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Talking Tax Credit with Cindy Stone, Home Loan Consultant

A Hawaii Life Core Value

Every now and again at Hawaii Life, we express our “unified” core value by collaborating with other professionals in the Real Estate Industry outside of our corporate domain. Today it is our pleasure to invite Cindy Stone, a Home Loan Consultant with Central Pacific Home Loans, to explain the latest in Tax Credits for Homebuyers.

First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

New Deadlines: In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Tax Credit VS Tax Deduction: It’s important to remember that the tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

Higher Income Caps: The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up to  $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price: Qualifying buyers may purchase a property with a maximum sale price of $800,000.

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Remember, the new tax credit program includes a number of details and qualifications. For more information or answers to specific questions, please call or email me today.

Cindy Stone
HomeLoan Consultant
65-1230 Mamalahoa Highway, Bldg. F, Suite 102
Kamuela, HI 96743
Mobile: 808.557.7269
Phone: 877.466.3429 ext. 437
Fax: 808.885-9340

Cindy Stone, Home Loan Consultant

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Dad

December 22, 2009

How come your picture’s not at the top??

Merry Christmas!

Dad

December 22, 2009

How come your picture’s not at the top??

Merry Christmas!

Foreclosures in Hawaii, the Holidays Are Over! « Hawaii Real Estate Blog

January 11, 2010

[…] this is a great time to buy. Interest rates are very, very low. The $8,000 tax credit for first time homebuyers and the $6,5000 tax credit for existing home owners has been extended until May […]

Foreclosures in Hawaii, the Holidays Are Over! « Hawaii Real Estate Blog

January 11, 2010

[…] this is a great time to buy. Interest rates are very, very low. The $8,000 tax credit for first time homebuyers and the $6,5000 tax credit for existing home owners has been extended until May […]

Hawaii Purchase Contract

January 18, 2010

And don’t forget the Hawaii Purchase Contract, formerly the Hawaii DROA form. Every buyer who wants to purchase a home in Hawaii has to fill out this form.

Jeff & Jeremy Grad have put together a book called The Hawaii Purchase Contract Made Simple.

Get it by clicking here:

Hawaii Purchase Contract

Hawaii Purchase Contract

January 18, 2010

And don’t forget the Hawaii Purchase Contract, formerly the Hawaii DROA form. Every buyer who wants to purchase a home in Hawaii has to fill out this form.

Jeff & Jeremy Grad have put together a book called The Hawaii Purchase Contract Made Simple.

Get it by clicking here:

Hawaii Purchase Contract

Elvis Crannell

June 1, 2011

The new post of your blog is defintely stunning!I enjoy your blog quite a lot and at the same time, gain great details out of it.They really informative.Thank you for sharing your idae with us!Well done!

Elvis Crannell

June 1, 2011

The new post of your blog is defintely stunning!I enjoy your blog quite a lot and at the same time, gain great details out of it.They really informative.Thank you for sharing your idae with us!Well done!

Katie Minkus, R(B)

June 2, 2011

@Elvis – thanks for the compliments! We love it when people read our blogs and find them useful! Warm aloha, Katie

Katie Minkus, R(B)

June 2, 2011

@Elvis – thanks for the compliments! We love it when people read our blogs and find them useful! Warm aloha, Katie

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