Troy Michigan Home Market Benefits from Tax Credit Extension

Posted by Rich Baum on Tuesday, November 24th, 2009 at 2:33pm.

Disclaimer:  I’m not a CPA or Tax Specialist; if you’regoing to buy a house and take advantage of the tax credit, work with a goodaccountant or tax specialist to make sure you get everything right.

 

The federalgovernment recently extended the home buyer tax credit deadline to April 30th,2010 and made some updates to the program that could impact the Troy Michiganhome and condo market.

 

INCOME/ FINANCIAL GUIDELINES

Before theadjustments were made, buyers would need to earn less than $75,000 a year toqualify for the full credit (the limit was set at $150,000 for couples).   The government has since adjusted theprogram to allow individuals with income up to $125,000/year to qualify (or$225,000 for couples).  The income limitis based on your modified-adjusted-gross-income, or what you take home afterdeductions, plus income from foreign investments.  This adjustment will have a positive impacton the nicer homes and condos in Troy’s neighborhoods.

 

FIRST-TIME-BUYER LIMITATIONS

Thisadjustment will affect singles and couples who are looking to move from theirexisting home or condo into a larger Troy residence.  If you’re a homebuyer who has owned a home,you’ll qualify if you (or your spouse) has owned and used the same residencefor a 5-consecutive-year period within an 8 year period ending on the date thatyou purchase the new home (read that again, I know it’s confusing –and rememberto consult your tax professional!).

 

QUALIFYING FOR A PARTIAL TAX CREDIT

If yourincome is above $125,000/year but below $145,000 ($225,000 and $245,000 forcouples), you can still qualify for a partial tax credit.  They determine the amount of your creditbased on your yearly income.

 

OTHER FACTS

  • You have to live in the home for threeconsecutive years after the purchase.
  • Tax credits on purchases made in 2010 can beclaimed on your 2009 taxes.
  • FHA buyers can get the credit at the time theypurchase their home (you don’t have to wait until you file your taxes).
  • Home purchases above $800,000 will not qualifyfor the home tax credit.
  • Military personnel who have been deployedoverseas for over 90 days in 2008 or 2009 will have one additional year (untilApril 30th, 2011) to qualify for the credit.

 

Theseadjustments are obviously great news for people looking for homes and condos inTroy.  If you’ve started your search andyou have questions about the area or a particular home, feel free to contactus.  If you’re just starting your search,check out the maps at http://troy.centricliving.com.

 

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