Home Buyer Tax Credit
Bringing =
the
Dream of Homeownership Within Reach
As part of its p=
lan to
stimulate the U.S. housing market and address the economic challenges facing
our nation, Congress has passed new legislation that:
- Extends the First=
-Time
Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April=
30,
2010.
- Expands the credi=
t to
grant up to $6,500 credit to current home owners purchasing a new or existi=
ng
home between November 7, 2009 and April 30, 2010.
Who Qualifies fo=
r the
Extended Credit?
- First-time
home buyers who purchase homes between November 7, 2009 and April 30, 2010.=
- Current
home owners purchasing a home between November 7, 2009 and April 30, 2010, =
who
have used the home being sold or vacated as a principal residence for five =
consecutive years within the last eight.
- To
qualify as a “first-time home buyer” the purchaser or his/her
spouse may not have owned a residence during the three years prior to the
purchase.
Which Properties Are Eligible?
- The
Extended Home Buyer Tax Credit may be applied to primary residences, includ=
ing:
single-family homes, condos, townhomes, and co-ops.
How Much Is Avai=
lable?
- The
maximum allowable credit for first-time home buyers is $8,000.
- The
maximum allowable credit for current homeowners is $6,500.
How is a Buyer's
Credit Amount Determined?
- Each
home buyer’s tax credit is determined by two additional factors:
- The
price of the home.
- The
buyer's income.
Price
- Under
the Extended Home Buyer Tax Credit, credit may only be awarded on homes
purchased for $800,000 or less.
Buyer Income
- Under
the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,
single buyers with incomes up to $125,000 and married couples with
incomes up to $225,000—may receive the maximum tax credit.
If the Buyer(s)’ Income Exc=
eeds
These Limits, Can He/She Still Get a Credit?
- Yes,
some buyers may still be eligible for the credit.
- The
credit decreases for buyers who earn between $125,000 and $145,000 for sing=
le
buyers and between $225,000 and $245,000 for home buyers filing jointly. The
amount of the tax credit decreases as his/her income approaches the maximum
limit.
- Home
buyers earning more than the maximum qualifying income—over $145,000 =
for
singles and over $245,000 for couples are not eligible for the credit.
Can a Buyer Still
Qualify If He/She Closes After April 30, 2010?
- Under
the Extended Home Buyer Tax Credit, as long as a written binding contract to
purchase is in effect on April 30, 2010, the purchaser will have until July=
1,
2010 to close.
Will the Tax Cre=
dit
Need to Be Repaid?
- No,
if he/she occupies the home for three years or more.
- Yes,
if the property is sold during this three-year period, the full amount cred=
it
will be recouped on the sale.