Compliments of:
Tony Byers
RE/MAX Equity Group
WHAT IS IT? Qualified first-time home buyers purchasing prior to May 1st, 2010 are eligible for a tax credit up to $8,000. If the home purchase price is less than $80,000, the tax credit will equal 10% of the purchase price. The tax credit is refundable, so the buyer will receive the full credit even if it exceeds his or her tax liability. For many people, this will mean getting a sizeable check from the government. The credit has a recapture provision: if you sell your home within three years of purchase, the entire amount of credit will be recaptured on sale. This tax credit does not need to be otherwise repaid; the money remains yours as long as you keep your home for three years. First Time Homebuyers are eligible for up to $8,000 tax credit if: • You (and your spouse, if applicable) have not owned a principal residence within the last 3 years; • Your modified adjusted gross income (MAGI) does not exceed $125,000 if you file as an individual taxpayer or $225,000 if you file a joint return • You are a U.S. citizen or you are not a nonresident alien; and • You purchase a home as a primary residence and entered into a binding contract before May 1st, 2010 and the closing occurs before July 1st, 2010 • Maximum purchase price limit of $800,000 Long time owners of a principal residence (non first time homebuyers) are eligible for up to $6,500 tax credit if: • You have owned and occupied a property as your principal residence for any 5-consecutive-year period during the 8-year period ending on the date of the purchase of a subsequent principal residence. CLICK HERE FOR ADDITIONAL INFORMATION ** Above information provides basic information about the tax credit. I strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation |
