The first-time home buyer tax credit has been extended through April 30, 2010 ??? April 30,2011 for military personnel.?? First-time home buyers still qualify for up to $8,000 tax credit.?? The tax credit is 10% of the home???s purchase price up to a maximum of $8,000.?? Home???s purchase price cannot exceed $800,000.?? In addition, the tax credit has also been expanded to include existing homeowners that have been in their current residence 5 of the last 8 years who choose to purchase a new primary residence by April 30, 2010.?? It???s focused at ???move-up??? buyers, but the home doesn???t need to be more expensive, just a different one.?? The tax credit for existing homeowners is up to $6,500.?? Since the home purchase does have to be a primary residence, second homes do not apply.
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Other good news, the income limitations on receiving the tax credits mentioned above has increased from $75,000 for single tax payers and $150,000 to those filing jointly to $125,000 for single tax payers and $225,000 for joint tax payers.
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The home purchaser must be in contract by April 30,2010 and close by June 30,2010 to qualify for the credit.?? Military need to be in contract by April 30, 2011 and close by June 30, 2011.?? Home buyer can even claim the credit on his 2009 tax returns by filing an amended return even if the purchase is made in 2010.
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If the homeowner sells his primary residence within 36 months of purchase, the credit must be paid back (military are excluded).
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For details, please visit:?? http://www.irs.gov/newsroom/article/0,,id=215791,00.html?portlet=7
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