[ Click here to return to list of articles ] 2010 Federal Tax Credit for Homebuyers Federal Tax Credit Information for First-Time Homebuyers and Existing Homeowners.November 20, 2009 The Federal Government has extended previous tax credits for homebuyers. Now, both first-time homebuyers and existing homeowners alike can take advantage of these tax-credit savings! Clear Lake offers a wide range of real estate at amazing prices. Get started on your home quest today! $8,000 First-time Homebuyer Tax Credit at a Glance The $8,000 tax credit is for first-time homebuyers only. For the tax-credit program, the IRS defines a first-time homebuyer as someone who has not owned a principal residence during the three-year period prior to the purchase. The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase. The tax credit is equal to 10 percent of the home’s purchase price, up to a maximum tax credit of $8,000. The tax credit applies only to homes priced at $800,000 or less. The tax credit now applies to purchases occurring on or after January 1, 2009 and on or before April 30, 2010. In cases where a binding sales contract is signed by April 30, 2010, a home purchase closed by June 30, 2010 will qualify. For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit. The $6,500 Move-Up / Repeat Homebuyer Tax Credit To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years they have owned the home. The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase. The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500. The tax credit applies only to homes priced at $800,000 or less. The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. In cases where a binding sales contract is signed by April 30, 2010, a home purchase closed by June 30, 2010 will qualify. Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit. For more information, contact us now! [ Click here to return to list of articles ]   Bookmark this website!

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