Effective November 2009

 

First-time Home Buyer Tax Credit

10% of the purchase price of the home, up to a maximum of $8,000. A first-time home buyer is defined as someone who has not owned a home for 3 years.

Repeat Buyer Tax Credit

$6,500 for buyers that have owned their current primary residence for at least 5 years. The purchase price of the new home cannot exceed $800,000.

Deadline

The new deadline for a purchase agreement to be signed is April 30, 2010 and the transaction must be closed by June 30, 2010. The deadline is increased by one year (to April 30, 2011) for members of the U.S. Military who have served outside the U.S. for at least 90 days between July 1, 2009 to May 1, 2010.

Income Limitations

Individuals with annual income of up to $125,000 and joint filers with annual income of up to $225,000 qualify for the full tax credit. Individuals with income between $125,000 and $145,000 and joint filers with income between $225,000 and $245,000 qualify for a reduced credit.

How to Claim the Credit

Once you have purchased the home, you can claim the credit on your federal income tax return. You may amend your current year return. If the tax credit exceeds your tax bill, you will receive a refund check.

For All Questions & Clarifications

Not all buyers and not all purchases qualify. Please contact the IRS, or visit their web site at www.irs.gov, or contact your CPA for further information. Or look at this PDF file.

Deadline for purchase is April 30, 2010