Will You Qualify For A Move-Up Homebuyer Tax Credit?

This Homebuyer TaxCredit of $6,500 (married couple) is available as of November 6, 2009 for couples with combined adjusted gross incomes that do not exceed $225,000 (for singles a $3,250 credit and adjusted gross income not exceeding $125,000).  You must be in contract on a new home by April 30, 2010, and must close escrow by June 30, 2010. 

The homeowner must have owned the prior residence for a consecutive 5 out of the last 8 years.  The new house cannot cost more than $800,000 and must become your main residence as of the date of close of escrow.  You do not have to sell your current home (you may rent it out).

As noted in my November 6th article, “…credit will help sellers of Palos Verdes real estate as they increase the pool of buyers for their properties with “trickle up” activity for Palos Verdes buyers who have sold their homes” to buyers taking advantage of this credit.  To date in 2009, Palos Verdes Peninsula has had 44 single family homes and 112 townhomes/condos sell for $800,000 or less.  That is 11% for single family residences and 96.5% of the total townhome/condo market.

This is a great time to buy – Interest rates are at historic lows and until April 30th you can get a tax credit.  Kenneth R. Harney in a Los Angeles Times articles writes, “do not assume that Congress will provide another extension.  All the political and budgetary signs point the other way, and some of the primary authors of the credit insist that this is it – no more extensions next year.  Take them at their word.”

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