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Extended Home Buyer Tax Credit 2009/2010
To stimulate the U.S. housing market
and address the economic challenges facing our nation, Congress has passed new
legislation that:
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Extended the First-Time Home Buyer Tax Credit of up to
$8,000 to first-time home buyers until April 30, 2010.
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Expanded the credit to include up to $6,500 credit to
current home owners purchasing a new or existing home between November 7,
2009 and April 30, 2010.
Who Qualifies:
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First-time home buyers who purchase homes between
November 7, 2009 and April 30, 2010.
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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.
If you purchased a home between January 1, 2009 and November 6, 2009 you will
need to check into the guidelines for the 2009 First-Time Buyer Tax Credit.
Eligible Properties:
The Home Buyer Tax Credit applies to
any primary residences, including: single-family homes, condos, townhomes, and
co-ops.
Credit Amount:
The maximum allowable credit for
first-time home buyers is $8,000.
The maximum allowable credit for
current homeowners is $6,500.
Each home buyer’s tax credit is determined
by two additional factors: price of the home and the income of the buyer.
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. These income limits
are not the same as the 2009 First-Time Home Buyer Tax Credit limits.
Other Common Questions:
Can a Buyer Still Get a Credit, if their Income Exceeds These
Limits?
Some buyers may still be eligible
for the credit or a portion of the credit.
Can a Buyer Still Qualify If they don’t close by April 30, 2010?
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.
Does the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay
the tax credit, if he/she occupies the home for three years or more. If the
property is sold during the first three years of ownership, however, the full
credit amount will be recouped at the time of the sale.
Please contact a tax professional or
the Internal Revenue Service at 800-829-1040 for specific details and tax
advice.
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