San Francisco Realtor breaks down Federal Housing Tax Credit 

Longtime San Francisco Realtor Danielle Laurent explains the Federal Housing Tax Credit, which is set to expire soon.

What is the federal tax credit? The federal government, in order to drive more buyers to the market, is allowing a buyer to take a tax deduction if they purchase a home.

Who qualifies?
If you’re a single person, you have to make no more than $125,000 in adjusted gross income. If you file jointly, it’s $225,000. You also [generally] have to be a first-time buyer, which the federal government says is somebody who hasn’t owned in three years.

How much is the tax credit worth?
The maximum purchase price is $800,000 — if you buy above that you can’t qualify. So if you’re a single person, you can take 1 percent of your purchase price. Let’s say you bought at $700,000, then the tax credit is $7,000. The maximum is $8,000.

When does it expire? They want you to be in contract by the end of April. You have to close by the end of June.

It was renewed last year — will it be renewed again?
I’m not hearing it this time. The last time, we were hearing a lot of talk about it and we were 95 percent sure they would renew it — this time, we’re not hearing a thing so I suspect it’s a no this time.

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Doug Graham

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