Home Buyer Tax Credit
If you have been watching the news lately, I am certain you are familiar with the words “Home Buyer Tax Credit”. Many buyers in the market today are wondering just exactly what that means for them.
While many buyers have a pretty good understanding of what the credit includes, several buyers are unaware that the extension is not just for First-Time Buyers. Additionally, buyers have many questions about what credit they may be eligible to receive.
Who Qualifies?
First-time Buyers:
By law a first time buyer is being defined as someone who has not owned a home within the past 3 years, for married couples this rule applies to both spouses
Move-up or repeat buyers:
Buyers who have lived in same home for at least 5 consecutive years of the eight years prior to the purchase date. For married couples this rule applies to both spouses.
Income Qualifications?
First-time Buyers:
If you purchased your home between Jan 1, 2009 and November 6, 2009 then the following caps apply:
Single buyers income cannot exceed $75,000
Married couples income cannot exceed $150,000
If you purchase your home between November 6, 2009 and June 30, 2010, then the following caps apply:
Single buyers income cannot exceed $125,000
Married couples income cannot exceed $225,000
*The contract must be written by April 30, 2010 with the transaction closing by June 20, 2010.
Move-up or Repeat Buyers:
- There is a cap for Move-up or Repeat Buyers:
Single buyers income cannot exceed $125,000
Married couples income cannot exceed $225,000
How much will I get?
First-time Buyers:
- 10% of the home purchase price with a maximum amount of $8,000
Move-up or Repeat Buyers:
- 10% of the home purchase price with a maximum amount of $6,500. Homes priced over $800,000 are not eligible for the tax credit
Do I have to repay the money?
No, this money is yours, as a tax payer you have contributed to the tax credit monies, and you do not have to repay it.
Remember to be eligible for the Tax Credit all contracts must be written by April 30, 2010 and the transaction must be complete and close by June 30, 2010.
To learn about other tax deductions and credits, view this article.
If you have any question, please let me know!
This information on home buyer tax credit is very essential for home buyers angela! This is a very helpful post. Thank you and keep on helping out.
Jeff Green
January 15, 2010
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