Tax Credit
Buying a Home? Now you can get up to $8,000 back, through April 30, 2010!
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THEY SAY IT’S A GREAT TIME TO BUY. The government recently expanded the first-time homebuyer tax credit* through April 30, 2010, and added a new homebuyer tax credit for existing homeowners who are interested in purchasing a new home. With mortgage rates still at historic lows, and plenty of affordable homes still on the market, this may be a great time to buy. IS IT A GREAT TIME FOR YOU TO BUY? |
How Much?
10% of the home price, up to $8,000 for qualified first-time homebuyers, or people who have not owned a home in the preceding 3 years, or up to $6,500 for qualified existing homeowners who have lived in their home for 5 of the last 8 years.
How Does It Work?
It’s for principal single-family residences, including condos and townhouses. It shows up as a credit on your income tax. The tax credit does not have to be repaid if you live in the home for a minimum of 3 years.
Who Qualifies?
Individuals with adjusted gross income up to $125,000 (or $225,000 if filing jointly) are eligible for the full tax credit. The credit is phased down for those earning more.
Like any good thing, there must be rules. You have to buy before April 30, 2010, settle by June 30, 2010, and live in the home as your principal residence for at least 3 years (Military families are exempt). Transactions must close no more than 60 days after April 30, 2010. Plus there are income guidelines, and other checkpoints to see if you qualify. Purchaser must attach documentation of home purchase to tax return. Ask your tax advisor for details on how the new law affects you or visit http://www.irs.gov/newsroom/article/0,,id=206291,00.html for more information.
If now is the right time for you to buy or sell a home, contact a RE/MAX sales associate today.
*Please consult a tax professional for more details about whether this applies to you.
