Home Buyer Tax Credit
Home Buyer Tax Credit - Extended and Expanded
In an effort to stimulate the U.S. housing market, Congress has passed new legislation that:
- Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010
- Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010
We have provided you with information about how the Extended Home Buyer Tax Credit can help prospective home buyers in their pursuit of home ownership.
Who qualifies for the extended credit?
- First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
- Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
Please note: If the purchaser or his/her spouse has owned a home in the 3 years prior to the purchase, you will not qualify for the tax credit
Which properties are eligible?
Primary residences, including: single-family homes, condos, townhomes, and co-ops are eligible for the tax credit.
What is the available credit?
The maximum allowable credit for first-time home buyers is $8,000.
The maximum allowable credit for current homeowners is $6,500.
How is the amount determined?
- Buyers income
- The price of the home
Will a buyer still qualify if he/she closes after April 30, 2010?
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.
Will the tax credit need to be repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.
For more information, please contact the Internal Revenue Service at 800-829-1040.