77 Days and Counting
Although you may close as late as June 30, this year to qualify for the extension on the tax credit, your contract must be in effect, no later than April 30,2010. This is exactly 11 weeks from today.
A first time homebuyer may request a tax credit of up to $8000 or 10% of the purchase price, whichever is more.
Unlike last years credit, you may qualify if you are not a first time home buyer as well. The program also gives those who already own a residence a tax credit of up to to $6,500. to qualify, you must have owned and occupied a primary residence for five consecutive years during the last eight years.
There is however an income limit. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. BUt joint filers who earn $245,000 and above are not eligible.
There is also a purchase limit. Your new home may not have a sales price of more than $800,000. Your new home must also be your primary residence for the next 36 months.
As always there are some other limitations (when Have you ever known he IRS to make it extremely simple?), so be sure to read up on the IRS guidelines, or speak w/ a well informed accountant, before making your purchase to see if you qualify and to what amount.
Get out there and happy house hunting!
Remember - you can always find your next house w/ your mouse, in the States of MA & NH by signing up on my website http://www.ourmovehome.com
I thought for first time home buyers it was 10% of the purchase price, up to $8,000. Did this change with the extension or am I mistaken?
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