The Home Buyer TAX CREDIT has been EXTENDED AND EXPANDED!!
NEWSFLASH-November 6, 2009: The Worker, Homeownership, and Business Assistance Act of 2009 has
extended the tax credit of up to $8,000 for qualified first-time home
buyers purchasing a principal residence. It also authorized a tax
credit of up to $6,500 for qualified repeat home buyers.
$8,000 First-time Home Buyer Tax Credit at a Glance
- The
$8,000 tax credit is for first-time home buyers only. For the tax
credit program, the IRS defines a first-time home buyer as someone who
has not owned a principal residence during the three-year period prior
to the purchase.
- 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.
- The tax credit applies only to homes priced at $800,000 or less.
- The
tax credit now applies to sales occurring on or after January 1, 2009
and or before April 30, 2010. However, in cases where a binding sales
contract is signed by April 30, 2010, a home purchase completed by June
30, 2010 will qualify.
- For homes purchased
on or after January 1, 2009 and on or before November 6, 2009, the
income limits are $75,000 for single taxpayers and $150,000 for married
couples filing jointly.
- For homes
purchased after November 6, 2009 and on or before 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.
- More info
- The credit is claimed using Form 5405, which you file with your original or amended tax return. More info and forms from the IRS website.
The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance
- 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.
- 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.
- The tax credit applies only to homes priced at $800,000 or less.
- The
credit is available for homes purchased after November 6, 2009 and on
or before April 30, 2010. However, in cases where a binding sales
contract is signed by May 1, 2010, the home purchase qualifies provided
it is completed prior to July 1, 2010.
- Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
- More info
- The credit is claimed using Form 5405, which you file with your original or amended tax return. More info and forms from the IRS website.
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