Real Estate Bailout

Changes have been made to the Home Buyer Tax Credit that may work in your favor as a Real Estate Bailout. If you are purchasing your first home and it closes by June 30, 2010, you could receive up to 8,000 or $4,000 is you are married but file taxes separately. The contract will need to be effective on April 30th in order to receive the credit. This offer is also good for people who have not owned a home in the last three years. You may be eligible for a $6,500 tax credit if you have lived in a current home consecutively for 5 of the past 8 years. This is known as a "move on" credit. There is no promise that this credit will be available in the future, so if you want to take advantage of this offer, you need to do so quickly. Income limits are $125,000 for a single person and $225,000 for a married couple with a $20,000 phase out credit for both. There is a limitation on the cost of the home being purchased which is $800,000. Purchases made by a dependent are not eligible. If you are unsure about whether or not you qualify, you should speak with your lawyer, accountant or financial advisor.