First Time Home Buyer Tax Credit
This tax credit along with a modification for “move-up” buyers has been extended.
For First Time Home Buyers the tax credit continues to be 10% of the sales price up to $8,000.
A First Time Home Buyer is defined as somone who has not owned a principal residence during the 3 year period prior to the purchase.
Homes must be priced at $800,000 or less.
The credit now applies to sales occurring on or after Jan. 1, 2009 and or before April 30, 2010. However, if there is a binding sales contract signed by April 30, 2010, the home will still qualify if the purchase is completed by June 30, 2010.
Income limits for a single taxpayer to qualify for the tax credit on homes purchased during the new qualifying period are up to $125,000 and married couples up to $225,000.
Move up/Repeat Buyers Tax Credit
Current home owners must have lived in their previous home for five consecutive years out of the last eight years.
The tax credit is 10% of the home’s purchase price up to a maximum of $6,500.
The credit applies to homes purchased after 11/6/2009 and on or before 4/30/2010. If there is a binding sales contract signed by 5/1/2010, the home purchase will qualify if it is completed prior to 7/1/2010.
The same income limits apply as those for First Time Home Buyers.
There are guidelines that are more specific to different situations that people have, such as, new construction, mortgage revenue bond, not a US citizen, etc.
To read more about these guidelines visit: http://www.federalhousingtaxcredit.com/faq1.php