Rancho Santa Margarita Blog

The federal tax credit for home buyers has now been signed into law! President Obama signed the extension and expansion of the home buyer tax credit into law last Friday, November 6th. This extends the tax credit that would have expired on November 30th and further expanded it!

The tax credit is now extended, pushing the December 1st deadline through till May 1, 2010. This is an $8,000 tax credit that is available now for first-time purchasers through April 30th, 2010.

Second, added to this bill is a new $6,500 tax credit for repeat buyers who purchase between December 1, 2009, and May 1, 2010. For those buyers who have used their home being sold as a principle residence consecutively for 5 of the 8 years, they will be able to receive the new $6,500 tax credit. 

Both tax credits are given an extra 60 days to close if they are in binding contracts as of April 30, 2010. Also, the income limits have been expanded to $125,000 on a single return and $225,000 on a joint return. Taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns, still maintaining that buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, with exemption for military personnel who move because of military orders.

Again, this is an incredible time for home buyers to take advantage of purchasing their first or new home in Rancho Santa Margarita. For information on buying or selling your Rancho Santa Margarita Home please feel free to call me at (949) 858-1770 or email me at margo@margomurray.com.

Your neighborhood realtor since 1988,

Margo Murray