Federal Tax Credit Extended - What You as a Buyer Need to Know
I've had a few of my clients getting nervous that they won't make the April 30th cutoff but guess what? You only have to be in CONTRACT by that date, and CLOSED by June 30th. Read for yourself:
Federal Tax Credit Extended - What You as a Buyer Need to Know
Tax Credits are available for both first time home buyers as well as those purchasing primary residences who have owned a home for 5 of the last 10 years. Condos, townhomes and single family homes apply and the maximum purchase price is $800,000. Two income caps have been set:
- If an individual makes $125,000 or higher, they will not be eligible.
- If a couple's joint income is $225,000 or higher, they will not be eligible.
The federal tax credit application form can be found here (IRS form 5405).
Here's a quick video version of the new federal tax credit explanation as well. (Scroll to the bottom of the web page to view the video).
This new bill is going to cost $10 billion just for the home buyer tax credit. Here's a more detailed version of the explanation of the extended $8,000 and $6,500 federal tax credit:
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