The Homebuyer Tax Credit was recently changed to include all homeowners who have lived in their current residence for at least five consecutive years of the last eight. It also continues to be available for those first- time home buyers who haven’t owned a Encinitas home in the past three years. The following is a comparison of these credits:

Tax Credit Amount
First Time Home Buyers: $8,000 ($4,000 filing separately or single)
Current Homeowners: $6,500 ($3,250 filing separately or single)

Expiration Date
The home must have a binding purchase agreement completed by April 30, 2010 and must be purchased by June 30, 2010.

Income Limits
$125,000 – single; $250,000 – married; with additional $20,000 phase out amounts on both.

Limit on Cost of Purchased Encinitas Home
First-Time Home Buyers: None
Current Homeowners: $800,000

This tax credit, which can be claimed on a 2009 or 2010 tax return, is a great deal for those thinking about buying an Encinitas home in the near future! Also, many sellers aren’t aware that if they have lived in their current Encinitas residence for at least two of the past five years their sale proceeds may be received tax free! With the old rule you had to purchase a property of greater value to shield your gain from taxes but that’s no longer the case! Make sure to consult with your tax man for specifics on your situation.

For more information, contact Gary Harmon, your top Encinitas Realtor.