Here are the details you need to know about the 2010 Home Buyer Tax Credit. Many aspects are identical to the 2009 First Time Home Buyer Tax Credit, but a few key changes have been made, including a separate Credit for Repeat Home Buyers to take advantage of. As soon as the legislation is signed by President Barack Obama, the new parameters apply.
Remember these are Tax Credits through the Internal Revenue Service (IRS). The Mortgage, Real Estate, and Title Companies are not involved with filing for or dispersing payment of the Tax Credit. For detailed questions please consult a Tax Professional.
Common Aspects of Both Credits:
- Income Limit of $125,000 for single buyers and $225,000 for couples
- Applies only to Owner Occupants (no rental properties allowed)
- Contract for the sale must be signed by April 30, 2010 and must close by June 30, 2010
- Applies to any 1-4 Unit Properties
- Credit is Refundable, which means it’s added to any other tax refund you receive
- Eligible Buyers can amend their 2008 or 2009 Tax Returns to receive the Credit faster
- Must live in the home for 36 months, otherwise the credit is repayable upon selling
Requirements for First Time Home Buyer Tax Credit:
- Must have not owned a home for the past 36 months (applies to both, if buying jointly)
- Credit will be given for 10% of the Sale Price or $8,000 (whichever is lower)
- All Other Requirements from Common Aspects
Requirements for Repeat Home Buyer Tax Credit:
- Must have owned a home and lived in it for 5 out of the last 8 years
- Credit will be given for 10% of the Sale Price or $6,500 (whichever is lower)
- Sale Price Limit of $800,000 for the Property
- All Other Requirements from Common Aspects
