Green Valley Real Estate Tax Credit 6500

As part of the plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

· Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.

· Expands the tax credit to grant up to $6,500 current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010 (and closes within 60 days of this date).

For Current Home Owners: The new law makes most current homeowners eligible for a tax credit of up to $6,500 when they purchase their next primary residence.

Current homeowners must have lived in their home for five consecutive years during the previous eight years to be eligible. Qualified home buyers can obtain the credit on homes purchased/ownership transfer between Nov. 7, 2009 and the end of April 2010 (with an additional 60 days allowed to close the transaction). The annual income limits for current homeowners (purchasing a different primary residence) are $125,000 for singles and $225,000 for married couples.

Additional Details: The credit can only be claimed on primary residences purchased for less than $800,000. If the property is used their primary residence for three or more years after the purchase, there's no payback required. If the property is sold in less than 3 years, then the entire $$ must be paid back. Buyers can claim the credit on their 2009 taxes, even if the purchase was made in 2010 by filing IRS form 5405 and supporting documentation of the purchase (such as HUD-1 Settlement Statement). The existing primary residence does NOT need to be sold to qualify for the tax credit.

6things you need to know about the $6,500 Home Buyer Tax Credit:

1. Six Thousand Five Hundred Dollars: The tax credit is equivalent to 10 percent of the purchase price of the new/replacement primary home -- capped at $6,500 -- when you purchase a primary residence. You must file IRS forms & documentation requesting the tax credit.

2. Current Home Owner defined: Must have lived in their home for 5 consecutive years during the previous eight.

3. Time Frame: Close on your new/replacement primary residence between November 6, 2009 with a pending purchase contract dated April 30, 2010 and close by June 30, 2010.

4. Income limits: The tax credit is subject to income limitations - annual income limits are $125,000 for singles and $225,000 for married couples.

5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.

6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

What will you use this money for? Moving/Relocation Costs? New Furnishings? Dream Vacation?

Now is the time to step away from the side-lines and purchase your home in Southern Arizona! Financing money is available for qualified buyers with interest rates available in the 5% range. YES, it IS time to buy your home NOW!

See accompanying information regarding changes for First-Time Home Buyer tax credit eligibility. As with ANY financial, legal or related matter; consult your professional advisor to discuss and verify your personal situation and/or eligibility.