There has been a lot of talk about the details of the extended first time home buyers tax credit and the newly added existing home owners credit. It takes some digging to find the official details of these great programs. Here we will give you a quick overview and show you some places to go to find out more information.
FIRST TIME HOME BUYER:
For the first time home buyers out there, they have extended the $8000.00 tax credit into 2010. You need to have an executed purchase agreement by April 30, 2010 and have until June 30, 2010 to successfully close on the home.
To qualify as a first time home buyer, you or you spouse can not have owned a home in the past 3 years.
EXISTING HOME OWNER:
To qualify for this tax credit of $6500.00, you must purchase your home between the dates of November 7, 2009 & April 30, 2010, with a final closing date of June 30th, 2010. You must have occupied the home for 5 consecutive years out of the last 8.
Single family homes, condos, townhomes & co-ops are all eligible for this credit. To receive the full amount of the credit, the home must not be valued at more than $800,000. Single buyers incomes must be less than $125,000, married couples up to $225,000 to receive the full credit. The credit begins to decrease for single buyers from $125,000 to $145,000 and for married couples from $225,000 to $245,000. If you earn over these amounts you will not qualify for any credit.
This is a tax credit, meaning it does not have to be re-paid if you live in the house for 3 years. If the house is sold prior to 3 years, the full credit will be re-couped at the time of sale.
For answers to these and other questions, you can contact the IRS directly at (800) 829-1040.
Here are some sites with information on the tax credits and buying a home:
- http://www.irs.gov/newsroom/article/0,,id=204671,00.html
- http://www.hud.gov/buying/comq.cfm
- http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit
Erik Laine
http://www.lpdesignonline.com
(888) 340-1769
LP Design
Tags: first time, home buyer, real estate, tax credit
