Home Buyer Tax Credit
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I can’t be the only one out there that’s a little confused about the home buyer tax credit so I decided to do a little research. The tax credit signed by Obama applies to home purchases made on January 1, 2009 through April 30, 2010. As long as a binding sales contract is signed by April, 30, 2010, the buyer(s) have until June 30, 2010 to qualify for the tax credit.
Important Home Buyer Tax Credit Facts:
- Qualified first time home buyer(s) can receive a tax credit of up to 10% of their home value or $8,000, whichever is less.
- The tax credit is refundable. Not only can it be used to offset taxes you owe, it can also be refunded. That means, if you and your spouse filing joint owe $1,000 on your taxes this year, you will receive a check for the difference, $7,000 in this case.
- For homes purchased on January 1, 2009 through November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
- For homes purchased on November 7, 2009 through April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit. Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
- Homes priced above $800,000 are not eligible for the tax credit.
- A repeat buyer is defined as a person who has owned and resided in the same home for at least five consecutive years of the eights years prior to purchase.
This website helps answer many important questions referring to the Home Buyer Tax Credit: