How to Cash in on the $8,000 Homebuyers' Tax Credit|ABC News 4

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How to Cash in on the $8,000 Homebuyers' Tax Credit

posted 11/06/09 5:07 pm

search tags: tax credit • homes • economy

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ABC News 4 - How to Cash in on the $8,000 Homebuyers' Tax Credit

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Mount Pleasant, SC - President Barack Obama extends the first time homebuyer tax credit until next year.

It is a boost for realtors and homebuyers at the same time.

“It’s an extension of the first time homebuyers’ credit that has been going on for the last year,” said Ed Hunnicutt, a realtor for Keller Williams Realty.

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The original program is set to expire at the end of the month, but it has been so successful, President Obama extended it until April 30th.

To qualify, you have to close on a home before the April 30th deadline, the home you buy can’t cost more than $800,000 and your income can’t be more than $125,000 for singles or $225,000 for couples.

The tax credit is no longer for first time homebuyers; folks who have lived in their home for five years are now eligible for a $6,500 tax credit.

“They need the help as well,” Hunnicutt said. He also says there is a catch to the deal.

“It’s called the recapture clause which means if you don’t live in the home for three years, then you have to pay that tax credit back. That would be on your taxes, when you sold your home before moving out in three years,” he added.

To make sure you get your cash, Hunnicutt advises having a Certified Public Accountant or your tax preparer include your closing documents with your tax returns.

Home sales in the tri-county area are up 7% from this time last year.

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