I know that this doesn’t apply to the luxury home market, but many of us have children or friends who would like to know more about the new changes to the tax credit.  The following is a simplified, boiled down version:

For those of you who want it simplified, here are the basics on the new tax credit:The new law extends the tax credit for first-time home buyers for up to $8,000.Includes a new credit of up to $6,500 for repeat buyers.All buyers must have a binding contract on a house in place on or before April 30. The purchase must be for a principal residence and must close on or before June 30.First Time Home Buyer Defined:  To be considered a first-time home buyer, an individual must not have owned a home in the past three years. Existing Home Buyer Defined:  Existing homeowners need to have lived in the same principal residence for five consecutive years during the eight-year period that ends when the new home is purchased.

Income Limits Defined:  The income limits have been raised with the new tax credit.  According to the Internal Revenue Service’s Web site, www.irs.gov, the home-buyer tax credit phases out for individuals with modified adjusted gross incomes between $125,000 and $145,000, and between $225,000 and $245,000 for people filing joint returns.

Feel free to contact us at (801) 867-7053 if you want more information or visit our website at www.bestutahluxuryhomes.com, or email me at audrey@monsongroup.net.