Home Buyer Tax Credit
Tax Credit For Home Buyers!
According to the American Recovery and Reinvestment Act of 2009, an $8,000 tax credit is available to first-time home buyers who purchase a primary residence on or after January 1, 2009 and before December 1, 2009.
IMPORTANT CHANGES!
President Barack Obama signed a $24 billion economic stimulus bill into law Friday, November 6 2009, giving tax incentives to prospective home buyers and additional jobless benefits to those who lost the jobs.
There are few very important changes, which positively affect many home buyers.
- Who may be eligible?
- First time home buyers and existing home owners
- First time buyer - definition for eligibility
- A First-Time Buyer is defined under the tax credit as an individual who has not owned a home in the last three years. For married joint filers, both must meet the first-time buyer test to take the credit on a joint return.For example, if you have not owned areal property in the past three years but your spouse has owned a principle residence, neither you nor your spouse qualifies for a first-time home buyer tax credit. However, unmarried joint purchasers may allocate their credit amount to any buyer who meet the first-time buyer test, such as may occur if a parent jointly purchases a home with a son or daughter.
- First time home buyer - amount of credit
- 10 % of purchase price up to $8,000 ($4,000 married filing separately)
- Current home owners - definition for eligibility
- Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
- Current home owners - amount of Home Buyer Tax Credit
- The tax credit is equal to 10 % of the purchase price or $6,500, whichever is less.
- When the Home Buyer Tax Credit Expires?
- Binding purchase agreement should be signed not later than April 30, 2010.Title should be transferred not later than June 30, 2010.
- Does the First-Time Home Buyer Tax Credit applies to condo?
- Yes, it does. Any home that will be used as a principle residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses, condominiums, manufactured homes (also known as mobile homes) and houseboats.
Dear valued visitors!
If you want to check if you are eligible for this Home buyer tax credit, please fill in the form below .
