2010 Homebuyer Tax Credits

2010 Homebuyer Tax Credits

This is a Sponsored Post written by me on behalf of Coldwell Banker. All opinions are 100% mine.

I’ve just been reading about the 2010 Homebuyer Tax Credits system in the US, which is very different from what I’m used to this side of the pond. It’s quite interesting to see how different taxation systems work and how different incentives are designed by the powers that be. Here’s a video what can help explain what the Tax Credit is all about:

So, here are some highlights of the Tax Credit system:

  • If you’re buying your first house, or haven’t owned one in the last three years, you can receive up to an $8,000 tax credit.
  • If you have lived in the same home for 5 of the past 8 years can receive up to a $6,500 tax credit if you decide to buy a new house.
  • For this extension, income limits are now $125,000 for singles, $225,000 for married couples with a $20,000 phase-out of the credit for both.

It’s interesting to see how the incentive is designed, the main reason being to stimulate the housing market and try and recovered from the current downturn. The thing about downturn is that it’s very much based on people’s perception, so something like this can have a positive effect by making the market start to regenerate. It’s all cyclical and one the ball gets rolling, things will start improving.

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