A New Year’s Resolution You Will Want To Keep!

Are you tired of the same old promises you make to yourself every January 1st but forget by February? Not this year! Here’s a 2010 resolution that’s so beneficial you simply must keep it: buy a Jersey Shore home! Now that the Home Buyer Credit Act has been extended and qualifying income levels have been raised, this is an ideal time to purchase a house. Generally advertised as a tax credit for first-time buyers, the new legislation actually benefits many current homeowners, also.

Basic facts:

Changes: Originally slated to end in November 2009, the credit deadline has been extended to April 30, 2010. If you have a binding, signed contract and settle on a Jersey Shore home before June 30, 2010, you are also eligible.

First-time buyers are those who have not owned a home in the last three years. They are eligible for a credit of 10% of the purchase price (not to exceed $800,000), up to $8000. Ownership of a vacation home or rental property not used as a prime residence does not disqualify a buyer as a first-timer.

Repeat buyers, or those who have owned and lived in a principal residence for at least 5 consecutive years of the last 8, may qualify for a credit of up to $6500.

Income levels have been increased to $125,000 for individuals and $225,000 for couples.

Military exception: For an active-duty member of the U.S. military serving an extended tour (90+ days) more than 50 miles from home, the deadline is April 30th   (or June 30) 2011.

Applying for the credit is easy. Buyers purchasing in 2010 will have the option to claim the credit on their 2009 (by filing an amended return) or 2010 income tax return. Applicants will use the new IRS form 5405 and attach copies of their HUD settlement form.

Important notes:

  • Applicants must be 18 years of age at time of settlement.
  • Principal residences may include single family homes, condos, townhouses, co-ops, and duplexes.
  • For married couples, the homeownership history of  both parties must qualify for the credit.
  • Recipients of the credit must own and live in the purchased home for at least 3 years or face repayment of the credit amount.
  • Your Jersey Shore home may not be purchased from any family member.

Remember that a tax credit is far more advantageous than a simple deduction as it provides a dollar-for-dollar reduction in what a taxpayer owes. If the amount of  the credit exceeds the amount owed, a refund will be issued.

If you have specific questions or need additional information, contact a tax professional or the Internal Revenue Service at 1-800-829-1040 or www.irs.gov.  

Enjoy the new year in your new Jersey Shore home!

Search all Jersey Shore homes for sale.

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About Patrick Parker Realty

Patrick Parker Realty, an independent boutique brokerage located in the heart of Bradley Beach is your local market leader. We understand the demands of a changing real estate market and avail ourselves of the latest industry information and tools to ensure excellent results. Our Commitment to You Our seasoned Real Estate Agents are committed to providing all of our clients, from first time sellers to veteran real estate investors, quality and friendly service. We walk you through every step of the sale process offering the guidance, feedback, and expertise needed to ensure your complete satisfaction.
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