It’s still not too late to take advantage of the homeowner’s tax credit. It’s not just for first-time home buyers but for repeat buyers too. Buyers who have a contract in place to purchase a primary residence by April 30, 2010, and close the transaction by June 30, 2010, can qualify for the tax credit.
Here are specific details about the Extended Home Buyer Tax Credit legislation, effective Nov 7, 2009. Please contact your accountant for more information.
- Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
- Expands the Repeat Buyer credit up to $6,500 credit for current home owners purchasing a new or existing home before April 30, 2010.
- A current home owner is defined as one who (he or his spouse) has used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
- A first-time home buyer is one who (he or spouse) may not have owned a residence during the three years prior to the purchase.
- Home Price – Tax credit may only be awarded on homes purchased for $800,000 or less.
- Income – Single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit. The amount of the tax credit decreases as income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.
Tags: first-time home buyer, tax credit