2010 Home Buyer's Tax Credit
Posted January 4th, 2010 by Sonya Hodges
Hello,
Just wanted to send out a reminder that in November, 2009, the First Time Home Buyer's Tax Credit deadline was extended and the qualifications were expanded. The information listed below is for purchases made AFTER November 6, 2009.
First-Time Home Buyer Credit: A First-Time Home Buyer is defined as a buyer who has not owned a primary residence during the three years up to the date of the new purchase. The first-time home buyer is eligible for a tax credit (maximum $8,000) if you enter into a binding agreement by April 30, 2010 and close no later than June 30, 2010.
Long-Term Resident Credit: A Long-Term Resident is defined as a buyer who has owned and used the same home as their principal or primary residence for at least 5 consecutive years of the eight-year period ending on the date of purchase of a new home as the primary residence (Wow! That's a mouthful). As a long-term resident, you could be eligible to receive a tax credit (maximum $6,500), as well. As with the First-Time Home Buyer Credit, you need to enter into a binding agreement by April 30, 2010 and close no later than June 30, 2010.
Members of the Military Who Qualify for the First-Time Home Buyer Credit or the Long-Term Resident Credit: Members of the military and certain federal employees living outside the U.S. have an additional year to purchase their primary residence. You will need to enter into a binding agreement by April 30, 2011 and close no later than June 30, 2011.
As with all tax credits there are rules and guidelines for eligibility. The first of which is Income Limits. Fortunately, those limits were increased for home buyers purchasing a home AFTER November 6, 2009.
Income Limits:
First-Time Home Buyers will be eligible for the full $8,000 credit and Long-Term Resident Buyers will be eligible for the full $6,500 if they meet the Modified Adjusted Gross Income (MAGI) guidelines. In order to qualify for the full tax credit, your (MAGI) cannot exceed $125,000 for an individual tax filer or $225,000 for joint tax filers.
Buyers with an (MAGI) that fall between $125,000-$145,000 (individual filer) or $225,000-$245,000 (joint filers) will be eligible for a reduced credit. Buyers with higher incomes do not qualify.
New Restrictions on Purchases Made After November 6, 2009:
1. Dependents cannot claim the tax credit.2. Buyers are not eligible for the tax credit if the purchase price exceeds $800,000.3. Buyer must be 18 years old on or before the date of purchase to qualify for the tax credit.
I hope this information has been helpful. I have provided you with the basic primary information about the Home Buyer's Tax Credit. For more information, I recommend you visit http://www.irs.gov/newsroom/article/0,,id=206294,00.html to view the IRS's page on various First-Time Home Buyer Credit Scenarios.
Now is the time! Make sure you take full advantage of this tax credit and start your home search today!
Happy Home Buying!
Sonya
Just wanted to send out a reminder that in November, 2009, the First Time Home Buyer's Tax Credit deadline was extended and the qualifications were expanded. The information listed below is for purchases made AFTER November 6, 2009.
First-Time Home Buyer Credit: A First-Time Home Buyer is defined as a buyer who has not owned a primary residence during the three years up to the date of the new purchase. The first-time home buyer is eligible for a tax credit (maximum $8,000) if you enter into a binding agreement by April 30, 2010 and close no later than June 30, 2010.
Long-Term Resident Credit: A Long-Term Resident is defined as a buyer who has owned and used the same home as their principal or primary residence for at least 5 consecutive years of the eight-year period ending on the date of purchase of a new home as the primary residence (Wow! That's a mouthful). As a long-term resident, you could be eligible to receive a tax credit (maximum $6,500), as well. As with the First-Time Home Buyer Credit, you need to enter into a binding agreement by April 30, 2010 and close no later than June 30, 2010.
Members of the Military Who Qualify for the First-Time Home Buyer Credit or the Long-Term Resident Credit: Members of the military and certain federal employees living outside the U.S. have an additional year to purchase their primary residence. You will need to enter into a binding agreement by April 30, 2011 and close no later than June 30, 2011.
As with all tax credits there are rules and guidelines for eligibility. The first of which is Income Limits. Fortunately, those limits were increased for home buyers purchasing a home AFTER November 6, 2009.
Income Limits:
First-Time Home Buyers will be eligible for the full $8,000 credit and Long-Term Resident Buyers will be eligible for the full $6,500 if they meet the Modified Adjusted Gross Income (MAGI) guidelines. In order to qualify for the full tax credit, your (MAGI) cannot exceed $125,000 for an individual tax filer or $225,000 for joint tax filers.
Buyers with an (MAGI) that fall between $125,000-$145,000 (individual filer) or $225,000-$245,000 (joint filers) will be eligible for a reduced credit. Buyers with higher incomes do not qualify.
New Restrictions on Purchases Made After November 6, 2009:
1. Dependents cannot claim the tax credit.2. Buyers are not eligible for the tax credit if the purchase price exceeds $800,000.3. Buyer must be 18 years old on or before the date of purchase to qualify for the tax credit.
I hope this information has been helpful. I have provided you with the basic primary information about the Home Buyer's Tax Credit. For more information, I recommend you visit http://www.irs.gov/newsroom/article/0,,id=206294,00.html to view the IRS's page on various First-Time Home Buyer Credit Scenarios.
Now is the time! Make sure you take full advantage of this tax credit and start your home search today!
Happy Home Buying!
Sonya