As part of the economic stimulus in 2009, a tax credit was created for first time homebuyers to help people buy a new home in the stressed economy. On November 6, 2009 the Worker, Homeownership and Business Assistance Act of 2009 extended the First Time Homebuyer Tax Credit.
Home Buyers who are looking to purchase a home before April 30, 2010 may be able to take advantage of the extended credit.
Here are some things you need to know to see if you might qualify:
- First-time Homebuyer is someone who has not owned a home in the last 3 years.
- Any home bought for a principal residence for a price of equal or less than $800,000 will qualify for the credit.
- The tax credit can be up to $8,000 or 10% of the purchase price, whichever is less.
- The extended dates will qualify homes purchased between Nov 6, 2009 through April 30, 2010.
- Taxpayers that qualify for thefull credit will be buyers with incomes up to $125,000 for a
single homebuyer or incomes of up to $225,000 for couples. Taxpayers who make more
than these income levels, will qualify for a prorated amount of the credit. This income
range for the extended tax credit is higher than the original income ranges for homes
purchased before Nov. 6 2009. - A written binding contract to purchase a home in effect on April 30, 2010 will have until
June 10, 2010 to complete the purchase and still qualify for the credit. - The taxpayer will not be required to repay the tax credit if they occupy the home for
three years or more. If the property is sold before that time period, a prorated portion
of the credit will have to be repaid.
Tax credit details can also be found on the IRS website at
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