Help with the Home Buyer Tax Credit
For all the home shoppers seeking clarity about the home buyer tax credits, we’ve posted the information below as concisely as possible.
FIRST-TIME HOME BUYERS:
The original cut-off date of November 30, 2009, for the $8,000 tax credit has been extended to include contracts executed on or before April 30, 2010. Important details to note:
- The government extension begins December 1, 2009.
- The tax credit may be as high as $8,000 ($4,000 for married couples filing separately).
- The buyer must not have owned a property within the last three years.
- The contract must be executed on or before April 30, 2010.
- The home must close on or before June 30, 2010.
- The purchase price limit is $800,000. -Income limits for the full tax credit: $125,000 (single) and $225,000 (married couples)
LONG-TIME HOMEOWNERS:
New legislation authorizes a tax credit for long-time homeowners buying a replacement principal residence.
- The buyer must have used the home sold or being sold as a principal residence consecutively for five of the previous eight years.
- The tax credit is up to $6,500 ($3,250 for married couples filing separately).
- The contract must be executed on or before April 30, 2010.
- The home must close on or before June 30, 2010.
- The purchase price limit is $800,000.
- Income limits for the full tax credit: $125,000 (single) and $225,000 (married couples).
For further information, contact Jonathan Doddridge at Ascent Financial Services, LLC, at 972-877-9787, or visit IRS.gov.
