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’re going to buy a house and take advantage of the tax credit, work with a good accountant or tax specialist to make sure you get everything right.
The federal government recently extended the home buyer tax credit deadline to April 30th, 2010 and made some updates to the program that could impact the Troy Michigan home and condo market.
INCOME
/ FINANCIAL GUIDELINES
Before the adjustments were made, buyers would need to earn less than $75,000 a year to qualify for the full credit (the limit was set at $150,000 for couples). The government has since adjusted the program to allow individuals with income up to $125,000/year to qualify (or $225,000 for couples). The income limit is based on your modified-adjusted-gross-income, or what you take home after deductions, plus income from foreign investments. This adjustment will have a positive impact on the nicer homes and condos in Troy’s neighborhoods.
FIRST-TIME-BUYER LIMITATIONS
This adjustment will affect singles and couples who are looking to move from their existing 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 residence for a 5-consecutive-year period within an 8 year period ending on the date that you purchase the new home (read that again, I know it’s confusing –and remember to consult your tax professional!).
QUALIFYING FOR A PARTIAL TAX CREDIT
If your income is above $125,000/year but below $145,000 ($225,000 and $245,000 for couples), you can still qualify for a partial tax credit. They determine the amount of your credit based on your yearly income.
OTHER FACTS
- You have to live in the home for three consecutive years after the purchase.
- Tax credits on purchases made in 2010 can be claimed on your 2009 taxes.
- FHA buyers can get the credit at the time they purchase their home (you don’t have to wait until you file your taxes).
- Home purchases above $800,000 will not qualify for the home tax credit.
- Military personnel who have been deployed overseas for over 90 days in 2008 or 2009 will have one additional year (until April 30th, 2011) to qualify for the credit.
These adjustments are obviously great news for people looking for homes and condos in Troy. If you’ve started your search and you have questions about the area or a particular home, feel free to contact us. If you’re just starting your search, check out the maps at http://troy.centricliving.com.
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