April 30, 2010 is the deadline for first time buyers and move up buyers to have a contract on a home and be eligible for tax credits! Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold as a principal residence for five consecutive years within the last eight years will qualify. To qualify as a first-time home buyer the purchaser or his or her spouse may not have owned a residence during the three years prior to the purchase. Each home buyer's tax credit is determined by two factors, the price of the home and the buyer's income.
Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close to be eligible for the credit. The buyer does not need to repay the tax credit, if the buyer occupies the home for three years or more. However, if the property is sold during this three year period, the full amount of the credit will have to be repaid on the sale.
For more information on these tax credits, consult with your CPA or tax attorney. You may visit www.BeckysRealEstate.com/library.html and read more about this topic in the 2010 Home Buyer Tax Credit document.