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.

The details of the extended homebuyer credit (beginning December 1, 2009 and expiring on April 30, 2010) are listed below. Dallas residents who have questions or would like further information, contact Jonathan Doddridge of Ascent Financial.

First-Time Buyers

• $8,000 tax credit ($4,000 for married couples filing separate
• Must not have owned a property in the last three years
• Expiration of credit = April 30, 2010
• Binding Contract Rule = Contract executed by April 30, but can close as late as July 1, 2010
• Income Limits = $125,000 (single) and $225,000 (married couples) with $20K phase out
• Purchase Price Limit = $800,000

Subsequent Purchaser

• $6,500 tax credit ($3,250 for married couples filing separate)
• Must have used the home sold or being sold as a principal residence consecutively for 5 of the of the previous 8 years
• Expiration of credit = April 30, 2010
• Binding Contract Rule = Contract executed by April 30, but can close as late as July 1, 2010
• Income Limits = $125,000 (single) and $225,000 (married couples) with $20K phase out
• Purchase Price Limit = $800,000