Agent Success Club

Tax Credit Extension

By now you’ve heard that the Homebuyer tax credit has been extended; not only for new homebuyers but current homebuyers have a reason to celebrate. New Homebuyers can purchase a home and get up to $8,000 in a tax credit and current homebuyers can purchase another home and get up to $6500 in a tax credit.

Not a bad incentive; and what’s even better is that for those current homeowners who thought of moving, now is your chance to move down to a lower priced home and save big money.

• You’re getting a $6500 tax credit to purchase another home
• If you move down think of the savings you can put into your pocket
• The tax credit does not hinge on a current homeowner selling, so you can also rent out the home
• Mortgage interest rates are still lower than usual

There are a few restrictions this time around; because of so many fraudulent transactions you are unable to get the tax credit at closing. The IRS is going to check and double check to make sure you’re not using fraudulent social security numbers or any other paperwork to scam the system. Once all the checks and balances have been done the IRS will issue you a check and mail out to you.

Be aware of the dates. We have until April 30 to sign a contract on a home and June 30, 2010 to close on a home. The biggest problem is that people procrastinate. You can’t start looking for a home April 1 and hope to sign a contract by April 30th. Is it possible? Sure, but you’re not taking into account all the “what-if’s”

So don’t wait until the very last minute if you want to take advantage of the extended tax credit.

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