The Worker, Homeownership, and Business Assistance Act of 2009 extended the tax credit of up to $8,000 for qualified first-time home buyers. It also authorized a tax credit of up to $6,500 for qualified repeat home buyers. In order to take advantage of the credit you must act quickly! The credits end on April 30, 2010!
Here is the information you need to know to get your money…
First Time Home Buyer Credit – Up to an $8,000 tax credit for first time home buyers purchasing a home that will be used as a principal residence (i.e. not a rental property, vacation home, etc.). You must live in the home for three years after the purchase or you risk having to repay the credit. The credit ends April 30, 2010…meaning that you need to be under contract by that date and need to close on the home by June 30, 2010. The income limit for the home buyer to be eligible for the credit is $145,000 for a single person and $245,000 for a married couple filing jointly. If your income is between $125,000 and $145,000 for a single person or $225,000 and $245,000 for a married couple you can still claim the tax credit but it will be a reduced credit, not the full $8,000. Other exceptions apply…act fast and see a realtor to discuss how you can claim your first time home buyer credit.
Move Up and Repeat Home Buyer Credit – Up to a $6,500 tax credit for move up and repeat home buyers purchasing a home that will be used as a principal residence. The credit ends April 30, 2010…meaning that you need to be under contract by that date and need to close on the home by June 30, 2010. The income limits for the home buyer to be eligible for the credit are the same as for the First Time Home Buyer Credit. To qualify for this tax credit you must have owned and resided in the same home for five of the eight years prior to the purchase date. A common misconception is that a repeat home buyer needs to purchase a home that is more expensive than their previous home…this is NOT the case.
Are You In the Military? – If you answered Yes then your ability to take advantage of the tax credit may be extended until April 30, 2011. It is important that you contact a realtor soon to ensure see if you qualify for this extension.
The Real Estate Department of Maitland & English Law Firm, PLLC is working long hours to do what it takes to make sure that anyone who wants to take advantage of either of these Tax Credits is able to close on their home within the time period. If you want to purchase a home and get your tax credit contact Maitland & English Law Firm, PLLC to schedule your closing time before the opportunity passes you by!