The
$8,000 tax credit is for first-time home buyers only. For the tax
credit program, the IRS defines a first-time home buyer as someone who
has not owned a principal residence during the three-year period prior
to the purchase.
The tax credit does not
have to be repaid unless the home is sold or ceases to be used as the
buyer’s principal residence within three years after the initial
purchase.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
The tax credit applies only to homes priced at $800,000 or less.
The
tax credit now applies to sales occurring on or after January 1, 2009
and on or before April 30, 2010. However, in cases where a binding
sales contract is signed by April 30, 2010, a home purchase completed
by June 30, 2010 will qualify.
For homes
purchased on or after January 1, 2009 and on or before November 6,
2009, the income limits are $75,000 for single taxpayers and $150,000
for married couples filing jointly.
For
homes purchased after November 6, 2009 and on or before 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.
The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance
To
be eligible to claim the tax credit, buyers must have owned and lived
in their previous home for five consecutive years out of the last eight
years.
The tax credit does not have to be
repaid unless the home is sold or ceases to be used as the buyer’s
principal residence within three years after the initial purchase.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
The tax credit applies only to homes priced at $800,000 or less.
The
credit is available for homes purchased after November 6, 2009 and on
or before April 30, 2010. However, in cases where a binding sales
contract is signed by April 30, 2010, the home purchase qualifies
provided it is completed by June 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.
