First-time homebuyers:

 

If you are a first time homebuyer, you could qualify for an income tax credit of up to $8,000.00. Do you qualify?

 

Use a portion of your credit to help pay for closing costs and downpayment! Find out more here!

 

As always, there are rules, regulations, etc. But here are the basics:

 

 

1. A first time homebuyer is defined as one that has not owned a home in 3 years.
   
   
2. The income tax credit is equal to 10% of the purchase price of the home or $8,000.00 - whichever is less. So if you bought a home for $75,000, you would qualify for a credit of $7,500. Any home $80,000 and above would qualify for the full $8,000 credit.
   
   
3. NEW!! The income guidelines have been RAISED! You could qualify for the full amount if you are making under $125,000 yearly filing single, or $225,000 yearly filing joint.
   
   
4. EXTENDED!! A contract (accepted purchase agreement) must be in place on the home before April 30, 2010. You must then close on the home prior to July 1, 2010.


5. The purchase price of a home tops out at $800,000.
   
   
6. The credit will decrease the amount on income tax you owe. If you owe $1,000, your net result would be a refund of $7,000. If you are due a refund of $1,000, you will get a refund of $9,000.
   
   
7. The money does not have to be paid back unless you sell the home within 3 years, in which case you will be required to pay back the credit. This was established as an "anti-flipping" rule.

 

Contact your tax professional for complete details for your situation.

 

the extended home buyer Income Tax Credit Questions and Answers
(Q&A from the National Association of REALTORS® website)

 

Present homeowners:

 

And here are the rules for you guys:

 

 

1. To qualify for up to $6,500 income tax credit, you need to have lived in a home 5 consecutive years out of the last 8. If you lived in a home from 2002-2007, but have been renting ever since, you qualify. If you lived in a home for 2 years, rented for 3, and then owned the last 3, you don't.
   
   
2. You could qualify for the full amount if you are making under $125,000 yearly filing single, or $225,000 yearly filing joint. If you earn more than this, the credit received will be phased out to the maximum qualifying incomes of $145,000 and $245,000, respectively.
   


3. You must have a written contract on a new or existing home (which does not need to be more than your present home) before April 30, 2010. You must close on that home before July 1, 2010.
   
   
4. You must use the home as your principal residence.


5. The purchase price of a home tops out at $800,000.
   
   
6. You cannot claim the credit if you a buying the home from a close relative.
   
   
7. The credit will decrease the amount on income tax you owe. If you owe $1,000, your net result would be a refund of $5,500. If you are due a refund of $1,000, you will get a refund of $7,500.
   
   
8. The money does not have to be paid back unless you sell the home within 3 years, in which case you will be required to pay back the credit. This was established as an "anti-flipping" rule.

 

Contact your tax professional for complete details for your situation.

 

the extended home buyer Income Tax Credit Questions and Answers
(Q&A from the National Association of REALTORS® website)

 

How do you claim the credit?

 

 

Confused? Not sure if you qualify? Give me a call and let's talk!