Have you heard the good news? The $8000 First-time Home Buyer Tax Credit has been extended through the Spring of 2010. That means you have more time to find your new home and take advantage of this great opportunity.
And that’s not all, now there’s a $6500 tax credit for previous home-owners who are selling their house to move into another!
We’ve laid out all of the important details for you below.
$8,000 First-time Home Buyer Tax Credit Details
Who?
The $8,000 tax credit is for first-time home buyers only.
A first-time home buyer is someone who has not owned a property during the three-year period prior to the purchase.
When?
The tax credit now applies to homes under contract on or before April 30, 2010 that will close on or before June 30, 2010.
Other Details
· The tax credit does not have to be repaid.
· The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
· For homes closed between January 1, 2009 and November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
· For homes purchased between November 6, 2009 and April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit as long as it closes before June 30, 2010.
The $6,500 Move-Up / Repeat Home Buyer Tax Credit Details
When?
-The credit is available for homes under contract between November 6, 2009 and April 30, 2010 that will close by June 30, 2010.
Who?
-To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
-Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
Other Details:
· The tax credit does not have to be repaid.
· The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
Links:
FAQ’s on the first time homebuyer credit:
http://www.federalhousingtaxcredit.com/faq1.php
FAQ’s on the $6500 credit:
http://www.federalhousingtaxcredit.com/faq2.php
Here is the form used to apply for the credit:
http://www.irs.gov/pub/irs-pdf/f5405.pdf