Saturday, March 20, 2010

First-time homebuyer TAX CREDIT has been extended!

When does the tax credit expire?
First-time homebuyers have until April 30, 2010 to be in contract on a home purchase. The purchase must close by June 30, 2010.

How much can a home cost?
Homes purchase for up to $800,000 are eligible.

How much is the credit?
10 percent of sales price or $8,000, whichever is less.

What is the income limit for first-time homebuyers?
The income limit for claiming the full tax credit is $125,000 for single taxpayersand and $225,000 for married taxpayers filing a joint return.

Does the tax credit have to be repaid?

How is the credit claimed?
Use IRS Form 5405 to claim. The IRS will require a copy of your HUD-1 Settlement Statement to verify the purchase.

How is a first-time buyer defined?
A first-time buyer is defined as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, this includes the home ownership history of both spouses.

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