Are you thinking of purchasing a home in the next few months? If you are shopping for a primary residence, less than $800,000, chances are you will qualify for the current Federal Tax Credit. Here is an overview:
The $8,000 First Time Home Buyer Tax Credit is for first time home buyers only (defined as someone who has not owned a principal residence during the 3 year period prior to the purchase). It does not have to be repaid and is equal to 10 percent of the home’s purchase price up to a maximum of $8,000. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. If a binding contract is signed by April 30 and completed by June 30, 2010 it will also qualify.
The Repeat Home Buyer Tax Credit is for homeowners who have owned and lived in their previous home for 5 consecutive years out of the last 8 years. The tax credit does not have to be repaid and is equal to 10 percent of the home’s purchase price up to a maximum of $6,500. The tax credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. In cases where a binding sales contract is signed by April 30, 2010 the home qualifies provided it is completed by June 30, 2010.
There are also rules for single buyers vs married couples. If you would like more information, please let me know. Happy house hunting!
