Not just another first time home buyer tax credit!

Posted on | November 24, 2009 | No Comments

Not just another first time home buyer tax credit!

Cincinnati Real Estate

The home buyer tax credit is not just for first time buyers anymore! Anyone who wants to purchase a home and gets in contract before April 30, 2010 will be eligible for a hefty federal tax credit if they meet the following criteria:

Has occupied current home as principal residence for 5 consecutive years within the last 8 years.

A written, binding contract must be in place by April 30 and closed by June 30, 2010.

Single-family home that will be used as a principal residence. It can also be a condominium, cooperative apartment, or other type of residence. Vacation homes and rental properties are ineligible . You cannot buy a home from a related person, which includes a spouse, ancestors (parents, grandparents, etc.), or lineal descendants (children, grandchildren, etc.) and receive the tax credit.

Maximum of $800,000 or less. Current homeowners do not have to purchase a more expensive home to qualify for the tax credit.

Income limits are as follows:
To receive the Full Credit, Individual income can be up to $125,000 or Joint filers incomes can be up to $225,000. To receive a Partial Credit, Individuals income can be $125,000 – $145,000, and Joint filers can have incomes of $225,000 – $245,000.

For first time buyers the tax credit is 10% of the purchase price, up to $8000.
For current home owners, the tax credit is 10% of the purchase price, up to $6500.

This is not a tax deduction, it is a tax CREDIT. This means that if at the end of the year you don’t owe any taxes to the IRS, the amount of the credit will be REFUNDED back to you in a check. It won’t be a big cardboard one like you see on TV, but it will make you feel just the same!

For more information, check out the resources below provided by the IRS and CABR:
Congress EXPANDS Federal Tax Credit
Very easy to understand IRS graph for eligibility

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