$8000 Tax Credit

The Buyer's Tax Credit that has been in effect for 2009 has been revised and extended until April 30, 2010. Once only relegated to First Time Homebuyers, there is a new aspect of the tax credit that is available for current home owners.

As agents we would like to make sure you are aware of the basic rules. However, it is always wise to consult your accountant in regard to your personal situation.

FIRST TIME HOMEBUYERS

Credit is equal to 10% of the home's purchase price, up to $8000

You may qualify if the following requirements are met:

You/your spouse have not owned property in the last 3 years.

Your ADJUSTED GROSS INCOME is not over $125,000 a year or $225,000 a year for couples. Income over these amounts may
still qualify for a lower credit amount.

You are 18 years of age or older.

Purchase price is no more than $800,000

New builds DO qualify - the "date of purchase" is considered the date the buyer OCCUPIES the property. Not the closeing date or start of construciton date.

Homes sold on Land Contract can qualify if they meet 7 tests listed on the IRS website.

Multiple family homes, up to 4 units, qualify as long as the buyer is occupying one of the units. However, the credit is reserved to 10% of the unit they occupy, not the entire purchase price. Example: if the you buy a duplex for $120,000 and the units are identical, the "cost basis" is $60,000 and the tax credit you claim would be $6000.

To see more in-depth information, go to the IRS website at:

ALWAYS AVAILABLE TO HELP YOU!

$8000 Tax Credit