Maco & Associates
News You Can Use
November 2009

In This Issue
First Time Home Buyers
Repeat Home Buyers
Quick Links
Toys for Tots:
A Convenient Drop-Off Location for All!
Spring Greetings!
We are delighted to support Kalejta Financial Management in the 2009 Toys for Tots Foundation Campaign. Their office, located at 740 W. Main St., Suite 1, Trappe, PA 19426, is an official Toys for Tots Drop-Off Location. We will be moving to the same location, Suite 3, at the end of the month. Pop in and visit us in our new location, and if you are so inclined, drop off a new toy in Suite 1 and meet our new landlord - Thomas Kalejta, and his wonderful staff!
Home Buyer Tax Credit

Here's the latest edition of Maco & Associates' newsletter, News You Can Use, which brings tax issues to your attention. Today, we're highlighting the extension of the popular first-time home buyers' credit. 
Since the home buyers' credit began, 1.4 million home buyers have taken advantage of it to earn up to $8,000 when buying a home!  This success has caused the government to extend the credit until April 30, 2010.  

Home BuyersWhat does it all mean?

The new guidelines will be extended to:
  • Home owners that have owned their current home for at least 5 years are now eligible for the credit up to $6,500. 
  • Further, first-time home buyers remain eligible for up to $8,000 or 10% of the cost
    of the home.
First-time home buyers...

First-Time Homebuyer Tax CreditThe extension of the credit is available for homes that are under agreement by April 30, 2010 and completely purchased/settled by June 30, 2010. The new regulations for this credit have a higher income limit as well, set at $125,000 for individuals and $225,000 for married couples. The credit will remain at 10% of the cost, with a maximum of $8,000. To receive these benefits, you -- and if you're married, your spouse -- must be first-time home buyers, meaning that you have not owned a home in the previous 3 years. Further, unlike the tax credit of 2007/2008, this does not need to be paid back!
Repeat home buyers...

Current home owners that are looking to purchase a new home are eligible for the credit as well! To qualify as a repeat home buyer, you must have owned and lived in your current residence for 5 consecutive years. Now these home buyers can receive a credit for up to $6,500 or 10% of the cost of the home. The new home does not have to be more or less expensive than your current home. The same income limits apply as for first time home buyers.   
The fine print..
For both credits,
  • The homes purchased must be less than $800,000.Home Buyer Tax Credit
  • The credit is refundable, meaning it will be issued as a check to you if your tax liability is less than the refund. 
  • The new extension cannot be applied retroactively; for example, it cannot be used if a home was purchased before November 6, 2009 and the owners did not receive the credit because of the old income limits.
As always, we're here to help you make sense of the numbers and to help you plan for unexpected tax changes. Give us a call at 610-489-7215 or send us an email any time throughout the year. We look forward to hearing from you.
- Maco & Associates