THE 2009 -2010 FIRST  TIME HOMEBUYER TAX CREDIT  AND EXISTING HOMEBUYER CREDIT

                                 

 

        THIS CREDIT HAS BEEN EXTENDED UNTIL APRIL OF 2010 !!!

 

  1. A refundable credit  equal to the lesser of 10% of the purchase price or & 8,000.  Refundable meaning the tax credit can offset your entire federal income tax liability with any left over amount being refunded to you.

     

  1. The tax credit is on homes purchased that closed between 12/1/09 – 4/30/10.  For new construction, the purchase date is considered to be the date you occupy the home

 

  1. Single taxpayers with an income up to $ 75,000 and married taxpayers with income up to $ 150,000 qualify for the full amount of the credit.

 

  1. You are considered a first time home buyer if you did not own a home during the 3 year period before the purchase of the home.  If you are married, both you and your spouse must pass the 3 year test.

 

  1. You are not eligible for the credit if you buy a home from a close relative.

 

  1. You will be required to repay the credit if you sell your home within 3 years of purchase.

 

  1. You can treat the 2009 purchase as having been made during 2008 and claim the credit on your 2008 tax return.

 

  1. The 2008 tax credit has to be paid over 15 years.  The 2009 tax credit does not have to be repaid!!!!

                      CURRENT OWNER CREDIT

 

1.  If you are presently a  home owner who has resided at your home for at least 5 yrs., you could be eligibile for a 6,500 dollar credit  if you decide to sell your home within this time frame.

 

PLEASE CONTACT YOUR TAX PROFESSIONAL FOR ADDITIONAL GUIDANCE ON HOW THIS CREDIT CAN AFFECT YOU!!