$8,000 Tax Credit Extended Into 2010
The New Deadline is April 30, 2010
The very popular tax credit will be ending on April 30, 2010. This means you have until that date to sign a purchase agreement and close by June 30, 2010. Certain restrictions and guidelines do apply. Time is ticking!
In case you are not aware, the Federal Government has extended the $8,000 home buyer tax credit through April 30, 2010. This tax credit is for qualified first-time home buyers purchasing a home they will live in as their primary residence (investment and vacation homes are not eligible). The deadline is for purchase contracts signed by April 30, 2010 and closed no later than June 30, 2010.
Income and Home Restrictions
The tax credit is limited to singles with an annual income less than $125,000 and $225,000 for married couples filing jointly. This is an increase from the previous $75,000 for singles and $150,000 for married in 2009. Moreover, the credit is limited to home under $800,000.
First-Time Home Buyer Defined
You are considered a first-time home buyer if you have not owned a home in the last three years prior to the purchase. This includes both spouses for married couples. In other words, if one spouse has not owned a home in the last three years but the other has, then neither spouse qualifies as a first-time home buyer.
$6,500 Credit Available for Non-First-Time Buyers
If you have owned and occupied your primary residence for five consecutive years out of the previous eight, you may be eligible for a $6,500 tax credit when purchasing new home.
The same income and home price restrictions for first-time home buyers also apply to non-first-time buyers. However, you are not required to sell your existing home. You will only need to proved the new home will be your primary residence.
Tax Credit Repayment?
It is important to note that there are certain situations where the tax credit may have to be repaid:
- If you sell you house within 3 years after purchase
- If you convert your home to a rental home or a business
- If you lapse into foreclosure
Regards,
