Quick Guide to the Tax Credit for 1st Time & Move Up Buyers

Homebuyer Tax Credit Update  

Here are some pointers for the extended & expanded tax credits.

*First Time buyers 10% of Purchase price with a maximum of $8000.  

*Current Owners have an incentive up to $6500-Qualifed buyer must have owned /occupied a primary residence 5 of the last 8 years.   

*Income limits are expanded to $125,000 on a single return with a cap of $145,000 & $225,000 on a joint return with a cap of $245,000.

  *Maximum purchase price is $800,000.

  *New Deadline ...contracts needs to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

  *A tax credit is a direct reduction in tax liability owned by an individual to the IRS. In the event that no taxes are owned then the IRS will issue a check for the amount of the credit back to the buyer. This credit does not require repayment unless at any time in the first 36 months of ownership the property is no longer your primary residents.

* IRS Form 5405 is used to determine your tax credit amount.

For all your Real Estate needs Call

The Valerie Belardo Team

ReMax Tri County

Res (609) 298-4283

(609) 587-9300 X420