The tax credit does not have to be repaid provided you live in the new home for a minimum of three years. Military families are exempt from this stipulation.
From now until April 30, 2010, first-time home buyers and move-up buyers have another great reason to get on the path to purchasing a new home! The benefit to first-time homebuyers is a tax credit up to $8,000 and for move-up buyers a tax credit up to $6,500.
At a Glance:
FIRST TIME BUYERS
Credit: Equal to 10 percent of the home's purchase price, up to $8,000
Who Qualifies?
- Those who haven't owned property in the last three years
- Those with income up to $225,000 for couples or $125,000 for individuals (credit phases out for people who make more than these amounts)
- Must be at least 18 years of age to claim credit
- Purchase price must be $800,000 or less
- Have until April 30, 2010, to enter into a contract for a home purchase
- Have until June 30, 2010, to close on the purchase
CURRENT HOMEOWNERS
Credit: Equal to 10 percent of the home's purchase price, up to $6,500
Who Qualifies?
- Those who have owned and lived in their principal residence for at least five consecutive years during the past eight years
- Those with income up to $225,000 for couples or $125,000 for individuals (credit phases out for people who make more than these amounts)
- Must be at least 18 years of age to claim credit
- Purchase price must be $800,000 or less
- Have until April 30, 2010, to enter into contract for a home purchase
- Have until June 30, 2010, to close on the purchase
Please consult with a tax professional for individual eligibility and implications of the Homebuyer Tax Credit. Purchaser must attach documentation of purchase to tax return.
