Tax Credit Reminders

Following is a list of some important reminders for home buyers who are planning on taking advantage of the federal tax credit:

•  A binding contract must be in place by April 30, 2010 and must close prior to July 1, 2010.

•  First time home buyers (buyers who have not owned a home in the past 3 years) can receive a maximum of $8,000 tax refund.

•  Existing homeowners who used their existing home as their principal residence for five consecutive years out of the last eight years can receive a maximum of $6,500 tax refund.

•  Tax credit is offered to singles whose adjusted gross income is not more than $125,000 and married couples with adjusted gross income of not more than $225,000.  Tax credit will begin to phase out at those amounts and will not be available for singles whose income is above $145,000 and couples whose income is above $245,000.

•  Tax credit only applies for homes purchased for $800,000 or less.

•  There are special provisions for member of the military, U.S. foreign service, and employees of the intelligence community serving the outside of the United States.  These people have an extra year to take of the tax credit.

My advice here is, not to wait, but take advantage of the situation quickly and reward yourself with an additional benefit of low interest rates.