There is plenty of information about the new $6,500 tax credit for homebuyers circling the media and internet, despite that many potential buyers are still in the dark and unsure about eligibility and how to qualify for the credit.
Businessweek has decided to write an informed article on the subject which gives more detail on the specifics of the bill.
They say, in order to qualify for the $6,500 credit YOU MUST close by June 30th 2010 – and have the contract signed by April 30th 2010. The purchase price for eligible homes (The credit applies to 1-4 unit homes,) is capped at less than $800,000, after your purchase you complete an IRS form and mail it to the IRS and they will send you a check for your credit.
The credit is for home buyers that have lived in their current primary residence for at least five consecutive years out of the past eight years – previously those who were not first time homebuyers were not eligible for a credit. For single tax payers the income limit went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000.
This is great news for the housing market here in Malibu California and nationally. As there are many baby boomers who are looking to downsize their home and this credit would be a perfect vehicle to encourage them to do so. Remember to get advice from your tax professional!
We will keep you updates as more develops!
If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 or via her online contact form on her website.
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Judy Kunisaki – CA DRE license 00963582
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[...] Tax, Tax and more tax! Not the most exciting topic we know…but all is not lost! – We all know that details on the $8000 first time homebuyer tax credit were readily available. But information on the $6,500 was always hard to come by. [...]
[...] in Malibu saw an increase of 5.9% for the 2008-2009 property tax year and this drop, while small, will mean a decrease in the bill by around $14 for a home worth [...]