Tax credits for first-time and repeat home buyers expire on April 30. Any eligible buyer who signs an earnest money agreement on a home can qualify, provided the deal closes by July 1. All U.S. citizens are eligible to participate in the program. Here are requirements and restrictions:
• First-time homebuyers are defined as buyers who have not owned a principal residence during the three-year period prior to the purchase. They may be eligible for a tax credit of 10 percent of the purchase price, up to a maximum of $8,000.
• Repeat buyers are defined as existing homeowners who have been residing in their principal residence for five consecutive years out of the last eight years, and who are purchasing a home to be their new principal residence. They may be eligible for a tax credit of 10 percent of the home purchase price, up to a maximum of $6,500.
• The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010.
• All homes with a purchase price of less than $800,000 qualify, including condominiums and detached houses, provided they will be used as the principal residence. Vacation home and rental property purchases do not qualify.
• Homebuyers who file as single or head-of-household taxpayers can claim the full credit if their modified adjusted gross income is less than $125,000.
• Married couples filing a joint return, the combined income limit is $225,000.
• Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit
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