Home Buyers Tax Credit
March 30, 2010
A first time buyer is defined as someone who has not owned a home in the last three years. If you are a first time home buyer, your tax credit will amount to 10 percent of the purchase price of your new home not to exceed $8,000.
A long time resident is defined as someone who has lived in the same primary home for 5 out of the past 8 years. If you are a long term resident, your tax credit will amount to 10 percent of the purchase price of your new home not to exceed $6,500.
The tax credit does not need to be paid back if you continue living in the home as your primary residence for three years without selling it.
the home must be purchased for less than $800,000 before May 1, 2010. If you sign a contract to purchase a home before May 1st, you would need to close on the transaction before 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.
You can not purchase the home from a related party like a spouse, direct ancestor, or direct lineal descendent: however you can still qualify for the credit if you purchase a property from a sibling, nephew or niece.
If you are married, both spouses must qualify for the credit.
Please contact me for more information regarding the tax credit or to go out and look for a new home.
One more month to get the home buyers tax credit!
