Today, Congress extended and added more eligible buyers to what started as the $8,000 first time home buyer tax credit. Now Investors, you CAN take advantage of the expanded Tax Credits! (Find out MORE this Tuesday, November 10th, 6pm PST in my FREE New Foreclosure Investor Webinar. Register Here.)
The tax credit was due to expire November 30. This extends the likelihood of stimulating the housing market as more people are eligible for these credits.
The existing tax credit of $8,000 was for home buyers who have not owned a primary residence in their own name in last three years. It now offers a $6,500 tax credit for move-up home buyers.
Investors, You CAN Take Advantage of this Expanded Tax Credit!
Here’s How…
The $6,500 credit can apply to investors choosing to buy a move-up and rent an existing home. They can move out of an existing primary residence, provided they have lived there for five consecutive years in the last eight, buy a new house and rent the previous home used as a residence.
“If you purchased a home in 2002, lived there for 5 years as your primary home and moved out in 2007, and turned that home into a rental property you are eligible under the move-up tax credit,” says Gibran Nicholas, Chairman of the Certified Mortgage Planning Institute.
This tax credit based on the fact that you lived in the same residence as your primary home for at least five consecutive years out of the past eight.
The tax credit applies to homes purchased under a binding contract for less than $800,000 before May 1, 2010 and closed by July 1, 2010. It works kind of like a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit.
WOW! There’s more…
Since they increased the income limitations by 50%, even more people will qualify for the credit – especially in parts of the country with higher costs of living. This should help stimulate parts of the housing market that may not have been impacted by the old version of the credit.
There are creative ways of structuring your home purchase in ways that maximize the benefits of the credit. Find out MORE on Tuesday, November 10th, in my FREE New Foreclosure Investor Webinar at 6pm PST, 9pm EST. You Must Register in Advance HERE or Call 800-310-7730 x2. Talk to you Tuesday!
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