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Home Buyer Tax Credit
The $8,000 First-time Home Buyer Tax Credit
The $8,000 tax credit is meant only for first-time home buyers.
For this 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.
As long as the property is not sold within 3 years of it's initial
purchase and continues to be used as the buyers principal residence,
the credit does not have to be repaid.
The tax credit can be up to $8,000 (10% of the properties purchase
price) and is applicable only to properties priced $800,000 or less.
The tax credit applies to purchases made after January 1, 2009 and
before April 30, 2010. Purchases with contracts signed before
4/30/10 and completed by 6/30/10 will also qualify.
The income limits for properties purchased between 1/109 and
11/6/09 are $75,000 for singles and $150,000 for married couples
filing jointly.
The income limits for properties purchased after 11/6/09 and
before 4/30/09 are $125,000 for singles and $225,00 for married
couples filing jointly.
In order to comply with the Anti-fraud Rule, buyers must attach
documentation of their purchase (HUD statement) to their tax return.
The $6,500 Move-Up / Repeat Home Buyer Tax Credit
Buyers must have owned and lived in their previous home for
five consecutive years out of the last eight to be eligible.
As long as the property is not sold within 3 years of it's initial
purchase and continues to be used as the buyer's principal
residence, the credit does not have to be repaid.
The tax credit can be up to a maximum of $6,500 ( or 10% of the
property's purchase price ) and is applicable only to properties
priced $800,000 or less.
The tax credit applies to purchases made after November 6, 2009
and before April 30, 2010. Purchases with contracts signed before
4/30/10 and completed by 6/30/10 will also qualify.
The income limits are $125,000 for singles and $225,000 for
married couples filing jointly.
In order to comply with the Anti-fraud Rule, buyers must attach
documentation of their purchase (HUD statement) to their tax return.
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