Homebuyers Tax Credit Expires This Week! Thousands of Dollars Could Slip Through Your Fingers! The heat is on for those who are out shopping for homes right now - as the Homebuyers Tax Credit is about to come to an end. Last November, the government expanded and extended the new Homebuyers Tax Credit. According to the program, first-time homebuyers are eligible for a tax credit of up to 10% of the purchase price of the home, with a maximum credit of $8,000. And current homeowners are eligible for up to $6,500. Although military personnel may qualify for a special extension, the vast majority of homeowners must have contracts in effect no later than April 30, 2010 and must close no later than June 30, 2010 to qualify for the credit. This means that homebuyers now have less than one week to get their paperwork going to qualify for this credit, before it goes away! Here are some important details about this tax credit. Dollar-for-Dollar Benefit The benefit of a tax credit is that it's a dollar-for-dollar benefit, rather than a "tax deduction" or reduction in tax liability that would only reduce $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing. Even Better... It's Refundable! Remember, because it's a tax credit, it's refundable! That means a homebuyer can receive a check for the credit if he or she has little or no income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000! What are the Income Caps? Single tax filers with incomes up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers with incomes of $145,000 and above are ineligible. Joint filers with incomes up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers with incomes of $245,000 and above are ineligible. What's the Maximum Purchase Price? Qualifying buyers may purchase a property with a maximum sales price of $800,000. If you or someone you know is in the process of purchasing a home, this is an important week to take action - feel free to forward this article to anyone who it might benefit. And give me a call with any questions - the clock is ticking and the deadline is Friday!! Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise. Economic Calendar for the Week of April 26 - April 30 Date | ET | Economic Report | For | Estimate | Actual | Prior | Impact | Tue. April 27 | 10:00 | Consumer Confidence | Apr | 53.7 | | 52.5 | Moderate | Wed. April 28 | 10:30 | Crude Inventories | 4/24 | NA | | 1.89M | Moderate | Wed. April 28 | 02:15 | FOMC Meeting | | 0.25% | | 0.25% | HIGH | Thu. April 29 | 08:30 | Jobless Claims (Initial) | 4/24 | 440K | | 456K | Moderate | Fri. April 30 | 08:30 | Gross Domestic Product (GDP) | Q1 | 3.2% | | 5.6% | Moderate | Fri. April 30 | 08:30 | GDP Chain Deflator | Q1 | 0.9% | | 0.5% | Moderate | Fri. April 30 | 08:30 | Employment Cost Index (ECI) | Q1 | 0.5% | | 0.5% | Moderate | Fri. April 30 | 09:45 | Chicago PMI | Apr | 59.8 | | 58.8 | HIGH | Fri. April 30 | 10:00 | Consumer Sentiment Index (UoM) | Apr | 71.5 | | 69.5 | Moderate | | |
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