Did you know that there are 2 types of home buyer tax credits? 
…and they are about to expire!
Per the Federal Housing Tax credit website (http://federalhousingtaxcredit.com) Type 1 - First Time Home Buyers * First Time Home Buyers (or anyone who has not owned a principal residence during the 3-year period prior to purchase) can claim up to 10% of the home's purchase price up to a maximum of $8000 in tax credit.
* Income limits are $125,000 for single taxpayers and $225,000 for married couples filing joint returns.
* Home Buyers must have a binding sales contract in force on or before April 30, 2010, with a close of escrow by June 30, 2010.
* Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000. Type 2 - Move-Up/Repeat Home Buyers * Qualified Move-Up/Repeat Home Buyers (or anyone who has lived in the same home for at least 5 consecutive years of the 8 years prior to the purchase date) can claim up to 10% of the home's purchase price up to a maximum of $6500 in tax credit.
* Purchases of homes priced above $800,000 are not eligible for this tax credit.
* Income limits are $125,000 for single taxpayers and $225,000 for married couples filing joint returns.
* Home Buyers must have a binding sales contract in force on or before April 30, 2010, with a close of escrow by June 30, 2010. Please check with your tax accountant to verify this information and to make sure that you qualify for this tax credit. If you or anyone you know would benefit from this tax credit, and are interested in purchasing a home call or email. I'll walk you through the process. |