Brandon FL Area home buyers should know about the Homebuyer Tax Credit
March 6, 2010 by Rick Frissell · Leave a Comment
The U.S. Congress recently extended and expanded the $8,000 tax credit for first-time homebuyers. First-time buyers now have until April 30, 2010, to sign a home purchase contract and qualify for the credit. Plus, many existing homeowners also qualify for a tax credit of up to $6,500 on a home purchase.
First-time Homebuyers
- Most details for first-time homebuyers remain the same. The maximum tax credit is still $8,000 ($4,000 for married individuals filing separately), and anyone who has not owned a home within three years is considered a “first-time buyer.”
- A purchase must be under contract by April 30, 2010, and must close no later than June 30, 2010. The maximum home value purchased cannot exceed $800,000.
- After Dec. 1, 2009, income limits rise to $125,000 for singles and $225,000 for married couples; up from the previous limits of $75,000 for singles and $150,000 for married couples. The tax credit phases out incrementally at each $20,000 increase in income.
Current Homeowners
- An existing homeowner who purchases another home may now claim a tax credit of up to $6,500. To qualify, that owner must have owned and used the same residence as a principal residence for any consecutive five-year period in the previous eight years.
- Personal income limits, maximum home value, and contract/closing deadlines are the same as those for first-time homebuyers.
- The tax credit does not have to be repaid if the buyer stays in the home at least three years. If the home is sold before that, the entire amount of the credit is recaptured on the sale.
- Time is of the essence. April 30, 2010 is rapidly approaching. If I can be of assistance please give me a call or send me an e-mail.
Rick Frissell- Florida’s Beautiful Homes™
813-340-6828
E-Mail: Rick@RickFrissell.Com
