Homebuyer Tax Credits at a Glance

December 3, 2009 at 1:04 pm 2 comments

The worker, Homeownership and Business Assistance Act of 2009 has extended the tax credit of up to $8000 for qualified first-time buyers purchasing a principal residence. It also authorized a tax credit of up to $6,500 for qualified repeat home buyers. Are you eligible? Check the full requirements at www.federalhousingtaxcredit.com or your tax advisor and then give us a call.

 

 

$8,000 First-Time

Home Buyer Tax Credit

 

$6,500 Move-Up/Repeat

Home Buyer Tax Credit

 

  • The $8,000 tax credit is for the first-time home buyers only. The IRS defines a first-time buyer as someone who has not owned a principal residence during the 3 year period prior to the purchase.
  • The tax credit does not have to be repaid unless the home ceases to become the primary residence within 3 years.
  • The tax credit is equal to 10% of the home’s purchase price up to a maximum of $8,000.
  • The tax credit applies only to homes prices at $800,000 or less.
  • The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding contract is signed by April 30, 2010 a home purchase completed by June 30, 2010 will qualify.
  • For homes purchase on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
  • For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

 

 

  • To be eligible to claim the tax credit, buyers must first have owned and lived in their previous home for five consecutive years out of the last eight years.
  • The tax credit does not have to be repaid unless the home ceases to become the primary residence within three years.
  • The tax credit is equal to 10% of the home’s purchase price up to a maximum of $6,500.
  • The tax credit applies only to homes priced at $800,000 or less.
  • The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding contract is signed by April 30, 2010 a home purchase completed by June 30, 2010 will qualify.
  •  Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

 

 

 

© Julie Nelson and The Nelson Project at Keller Williams Reatly, 2008-2010. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Julie Nelson and The Nelson Project at Keller Williams Realty with appropriate and specific direction to the original content.

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Entry filed under: Smart Buyers, Smart Real Estate. Tags: , , , , , , .

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2 Comments Add your own

  • 1. janhillmortgage  |  January 27, 2010 at 5:16 pm

    Wondering if there needs to be a special post on the $6500 tax credit for existing owners? Thanks for this quick reference table Julie!

    Reply

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© Julie Nelson and The Nelson Project at Keller Williams Reatly, 2008-2010. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Julie Nelson and The Nelson Project at Keller Williams Realty with appropriate and specific direction to the original content.

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