The Homebuyer Tax Credit

Congress has extended the first time homebuyer tax credit to April 30, 2010.  There is also a new tax credit for homebuyers who have lived in their home for at least 5 years.  The first time buyer can receive up to $8000 in credit ($4000 if married and filing separately).  The current homeowner can get up to $6500 ($3250 if married and filing separately).   

This credit ends on April 30, 2010, but as long as a written binding contract to purchase is in effect on April 30, 2010, the buyer will have until July 1, 2010 to close.  You will need to attach documentation of the purchase to your tax return. 

There are income limits.  If you are single your income can be up to $125,000, if married, up to $225,000.  If you are an existing homeowner you do not have to buy a house that costs more than your old house, but can move from a high cost area to a lower cost area.  The home cost is limited to $800,000.  This $800,000 is an absolute ceiling.  Any amount above the $800,000 makes the home ineligible for any portion of the credit.   

Note:  If you owned a home for at least 5 consecutive years, and have been renting for a couple of years, you are still eligible for the $6500 tax credit.

John Borgert is a Real Estate Professional trained to teach 1st time home buyer classes. Call John or Shelton Land and Homes LLC for information about time and location. Class is 5 hours a certificate is issued that is good for 2 years. Various down payment assistance programs are available with the certificate of attendance.

You can get lots more information at this web site:  Home Buyers Tax Credit .