Details of the Expanded Tax Credit
Effective date is Tuesday, December 1, 2009
The tax buyer credit expires May 1, 2010.
You must be under contract on a home by May 1st, and close on that home no later than June 30th, 2010.
Amounts:
- The first-time buyer credit remains 10 percent of the cost of the home or $8ooo, whichever is less.
- The credit for existing homeowners is 10 percent of the value of the new home or $6500, whichever is less.
- A first-time homebuyer cannot have owned a home during the past three years.
- Existing homeowners must have owned and lived in their current home five out of the preceding eight years.
- Only principal residences qualify. No second homes or investment properties.
- The measure raises the income limits for those claiming the credit to $125,000 a year for individuals and $225,000 for couples, up from $75,000 and $150,000 in the previous first-time buyer credit. After that, the value of the credit phases out.
- The cost of the new home cannot exceed $800,000.
- Use IRS form 5405, which you file with an amended tax return.
For more information on applying, go to http://www.irs.gov/newsroom/article/0,,id=204671,00.html
$8,000 First-Time Home Buyer Tax Credit at a Glance
The tax credit is for first-time home buyers only.
The tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
To see answers to frequently asked questions to the $8,000 tax credit, visit this link:
http://www.federalhousingtaxcredit.com/2009/faq.php
$7,500 First-Time Home Buyer Tax Credit at a Glance
The tax credit is available for first-time home buyers only.
To see answers to frequently asked questions for the $7,500 tax credit, visit this link:
