Home Buyer Tax Credit Expiring Soon.
Posted by NMWelcomeHome Team Associates on Thursday, February 25th, 2010 at 9:22am.
FEDERAL HOME BUYER TAX CREDIT SUMMARY
The Federal Homebuyer Tax Credit is available to buyers who have not owned a principal residence in the last three years (“New Buyers”) and to buyers who have owned and lived in their principal residence for 5 consecutive years out of the last 8 years (“Repeat Buyers”).
The maximum credit amount is $8,000 for New Buyers and $6,500 for Repeat Buyers.
The tax credit is available for homes closed after November 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the credit provided the closing occurs prior to July 1, 2010.
Homes with a purchase price of up to $800,000 qualify. The home must be used as a principal residence.
Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
The tax credit does not have to be repaid, unless the owner sells or stops using the home as their principal residence within three years after the purchase.
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