I wanted to share some basics on the two tax credits being offered for a limited time:
- First Time Home Buyer Tax Credit: this is basically the same as it was but the income limits have been expanded to $125,000 for individuals and $225,000 for married couples filing jointly. This expires April 30, 2010.
- Existing Home Owner Tax Credit:
To be able to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years. The credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
This tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500 and applies only to homes priced at $800,000 or less.
The dateline for the this credit is it's available for homes purchased after November 6, 2009 and on or before April 30, 2010. But, in cases where a legal sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
Visit www.FederalHousingTaxCredit.com for more details and for the information source for this article.