Tax Credit

     It is now official. President Obama signed off on the Tax Credit extension for first time buyers. The extension also comes with new additions which will for other home buyers to take advantage of the credit.

     The initial tax credit for $8,000 for first time buyers was set to expire as of November 30, 2009. The extension will now carry through the early spring of 2010 (April 30, 2010). The first time purchaser automatically qualifies as well as a purchaser that has not had an interest in a primary property for 3 years prior to purchase of this new home.

       As a local Realtor in the Washington DC Metro Area, I know the additional change of income qualification will help many purchasers in our area take advantage of this credit. The income cap was previously set at $75,000 for an individual and $150,000 as a married couple. The new cap is $125,000 and $225,000.

        The limitation which will still impact communities in our area is the "800 Rule". If a purchase property is $1.00 over $800,000 it disqualifies the property and purchaser for any tax credit. Contact The Nellis Group for more information on this limitation and others so you can take advantage this year of the Tax Credit.

         For a more detailed Q&A: Tax Credit Q&A

         Here is a Video from the IRS... Talking about the right forms and process to get your tax credit!