First Time Buyer Tax Credit

H.R. 4853: Real Estate Provisions in the 2010 Tax Relief Bill

On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853) extending the Bush-era tax rates and a host of other expired and expiring provisions. The legislation is not "paid for," so there are no revenue raisers taken from real estate or other industry groups. The package provides temporary extensions of its numerous provisions. Some are retroactive, as well, so that the rules that had been in place previously will operate as if they had never expired. Included in the bill are provisions that affect real estate investment and operationssuch as energy-efficiency tax credits, capital gains, and more. A few key provisions of interest to REALTORS include:
  • Retention of Bush-era tax brackets through the 2011 and 2012 tax years;
  • Retention of the capital gains tax rate of 15 percent for assets sold or disposed of during 2011 and 2012;
  • Reduction of payroll taxes for employees and self-employed individuals during 2011;
  • Extension of numerous energy efficiency credits through December 31, 2011, including: the Energy Efficient New Homes, Energy Efficient Existing Homes, and Energy Efficient Buildings credits.
For more detailed information on the provisions of this bill affecting real estate, home owners, and REALTORS as small business owners, please see the see the full summary. Article Courtesy of National Association of REALTORS

HOMEBUYER TAX CREDIT

littleguyCongratulations! Congress has increased the homebuyer tax credit to $8,000 and has made several improvements concerning this credit. This bill provides for an $8,000 tax credit that would available for first time home buyers for the purchase of an owner occupied residence on or after January 1, 2009 and before December 1, 2009 and the best news is that this credit does not require repayment. The credit will be claimed on a tax return to reduce the buyers income tax liability. If any credit remains unused, then the unused amount will be refunded as a check to the purchaser.

(Article Courtesy of Peabody&Lynnfield Weekly News-March 5, 2009)

Comments

  1. Ubtoblem on

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