Miedema Realty, Inc

We typically send out the monthly e-news on the 1st & 15th of the month but we thought this was great news to the real estate market. 

Congress has extended and expanded the homebuyer tax credit which will become effective when President Obama signs the bill. Here are a few changes and additions to the bill for a complete list of the changes us 616-538-4800.

·    Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.   The purchaser will have till July 1, 2010 to close the property.

·    Expands the credit to grant a $6,500 credit to current home owners purchasing a new or existing home between the date the bill is signed by President Obama and April 30, 2010.   Purchaser must have used the house as a principal residence consecutively for 5 of the previous 8 years.

·    Buyer's annual income limits have been increased to $225,000 ($125,000 for a single)

·    There is a limitation on the cost of the purchased home of $800,000. Source:NAR

Current 1st Time Home Buyers Tax Credit

There have been many questions about the current tax credit and how to file for it.  You must obtain the form 5405 http://www.irs.gov/pub/irs-pdf/f5405.pdf

You can file an extension to your 2008 return (you will also need an extension form then) or wait until the 2009 tax filing.  If you did NOT have it filed at closing, you must do so.  Seek professional advice if you are uncertain.