$8,000 and $6,500 Tax Credit
February 10th, 2010
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Tax credits are now available for first-time homebuyers and current homeowners
The $8,000 first-time homebuyer tax credit is extended
- Qualified first-time homebuyers would receive a tax credit of up to $8,000 if they sign a purchase agreement by April 30, 2010 and close by June 30, 2010
- Home purchased must be their primary residence
- Buyer cannot have owned a home during the past three years
- Tax credit is up to 10 percent of the home’s value (not to exceed $8,000)
- Annual income caps to qualify for the tax credit will increase ($125,000 for single filers / $225,000 for joint filers)
- Buyers don’t need to repay the tax credit if they occupy the home for three years or more
- Members of the military who are serving overseas on “official extended duty” for a least 90 days during 2009 and the first four months of 2010 have an extra year to take advantage of the credit
New $6,500 tax credit for current or previous homeowners purchasing a primary residence
- Now, qualified repeat homebuyers would receive a tax credit of up to $6,500 if they sign a purchase contract by April 30, 2010, and close between November 7, 2009, and June 30, 2010
- Eligible homebuyers must have lived in their current home for five consecutive years of the past eight years
- The new home’s cost can be less than that of the current home
- Tax credit is up to 10 percent of the home’s value (not to exceed $6,500). Purchase of homes priced above $800,000 are not eligible for the tax credit
- Annual income caps to qualify for the tax credit will increase ($125,000 for single filers / $225,000 for joint filers)
- Buyers don’t need to repay the tax credit if they occupy the home for three years or more
- Members of the military who are serving overseas on “official extended duty” for a least 90 days during 2009 and the first four months of 2010 have an extra year to take advantage of the credit
Consult a tax advisor for your exact details.
Categories: Buyers