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Repeat Home Buyer Tax Credit

By Marilyn Harrell

Real Estate Agent with Better Homes and Acres

March 21, 2010 05:23 AM

Repeat Home Buyer Tax Credit - Up to $6500 Tax Credit for Repeat Home Buyers

Repeat Home Buyers - You have owned a principal residence for eight years and have lived there consecutively for five years prior to the purchase of your home which would qualify for the credit.

Tax Credit - Does not have to be repaid* Buyer must use the home for their principle residence for three years.

Amount of Tax Credit - Ten percent of the purchase price of the home up to $6500.00

Qualifying purchase price - $800,000 or less

Time Period for Purchase - November 7, 2009 through April 30, 2010 for fully executed purchase agreement that closes on or before June 30, 2010

Income requirements/Not to exceed:

Taxpayers filing Single - $125,000

Taxpayers filing Married/Jointly - $225,000

You may claim the credit on your 2009 tax return, due April 15, 2010.

Note: You may not claim the credit prior to the closing date.

What to use to claim your credit:

Purchasers of conventional homes should include a copy of Form HUD-1, Settlement Statement, or other settlement statement, showing all parties' names, property address, sales price and date of purchase.

Purchasers of mobile homes who are unable to get a settlement statement should include a copy of the executed retail sales contract showing all parties' names, property address, purchase price and date of purchase.

Purchasers of newly constructed homes where a settlement statement is not available should include a copy of the certificate of occupancy showing the owner's name, property address and date of the certificate.1

1 Source: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Tax Credits at a Glance was also used as a source for information - link below:

http://www.federalhousingtaxcredit.com/glance.php

Happy House Hunting! Let me help you find the home that is everything to you! Marilyn

For more information, please contact me: mharrell@ejourney.com