As an existing homeowner, you may be eligible for a big tax credit. If you purchase a new principal residence by April 30, 2010, you could get a tax credit of up to $6,500. To be eligible, you must have lived in your home for 5 consecutive years of the past 8. There is an $800,000 price cap for eligible homes, and the credit begins to phase out for joint filers who have an income of $225,000, and for single filers who have an income of $125,000.
Now is the time to move to a new home. There are lots of great houses available, and eligibility is good for closings through June 30, as long as the contract is in place by April 30. Your REALTOR can help you decide if you are eligible for the credit, but you need to hurry to allow yourself time to find the perfect home by April 30. Click here to learn more.
Thousands of dollars in tax credits are waiting for 1st time homebuyers. It’s like getting the house of your dreams at a big discount!
First-time homebuyers may be eligible for a large federal tax credit on homes bought in 2009 or early 2010. If you haven’t owned a home in 3 years, you are considered a 1st-time buyer. Sign a binding contract by April 30, 2010, and you are eligible for a tax credit worth either $8,000 or 10% of the value of the house, whichever is less.
The closing for 1st-time buyers can take place as late as June 30, 2010. The 1st-time homebuyer credit is refundable, so you can get it even if you owe no federal tax. However, there is an income-based phase-out beginning with joint filers with an income of $150,000 and $75,000 for single filers. The 2008 tax credit was really an interest-free loan that had to be paid back over 15 years, unlike the current credit. This is a better deal. Your REALTOR can help you figure out if you might be eligible for the new tax credit, but you need to hurry to find the perfect home by April 30. Learn more about the Federal Tax Credit.