On November 6, the first-time homebuyer tax
credit was extended. In addition, the tax credit was
expanded to include current homeowners. This is
good news for the REALTOR® community, as well as
potential homebuyers. Below you will find the basic
facts you need to know about the newest version of
the tax credit:
• Up to an $8,000 tax credit is available for first-
time homebuyers—these individuals cannot have
owned a residence in the past three years;
• Up to a $6,500 tax credit is available for indi-
viduals who have lived in their home for five con-
secutive years out of the last eight;
• Income limit for single buyers is $125,000;
• Income limit for married buyers who file jointly is
$225,000;
• Buyers must live in the home purchased for a
minimum of three years in order to avoid having
to pay back the tax credit;
• The deadline has been extended to April 30,
2010—a written, binding contract must be in
place by April 30 to qualify, and buyers must
close on the home they are purchasing on or
before June 30, 2010.
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