Good news! If you're a first-time homebuyer, it's may not be too late for you. The first-time homebuyer tax credit has been extended from November 30th, 2009 to April 30th, 2010. Binding contracts that are signed by the April deadline must be completed by June 30th, 2010 to qualify. For your information, here is a summary of the criteria for the tax credit:
Who is Eligible for the up to $8,000 Tax Credit?
First-time homebuyers are US citizens who file taxes, who are over the age of 18, who are not dependents of another tax payer, or who are further defined by the law as buyers who have not owned a principal residence during a three-year period prior to the purchase.
What Are the Limits on the Qualification? A tax credit is given for 10% of the value of the home up to $800,000 maximum. Homebuyers who file as single or head-of-household can claim the full credit if their modified adjusted gross income is less than $125,000. Married couples filing jointly use a combined income of $225,000. Buyers whose income exceeds the maximum limits by no more than $20,000 may receive a partial credit.
What Types of Homes Qualify?
All homes with a purchase price of less than $800,000 would qualify, provided that the home will be used as their principal residence. Neither vacation home nor rental property purchases qualify.
How do I Get the Tax Credit?
This is a refundable credit which means that if the amount of income taxes you owe on your 1040 Federal Income Tax form is less than the credit amount you qualified for, you will receive a check from the government for the difference.
All qualified homebuyers can take the tax credit on their 2009 or their 2010 income tax return. If your home is purchased in 2010 but you want to use the tax credit against your 2009 taxes due, you can file an amended 2009 income tax form. Note: If your sell the home or it ceases to be your principal residence within three years from the date of purchase, the tax credit must be repaid. As you can imagine, tax issues need careful consideration. To learn more about the tax credit and ways to ensure that you qualify, call me at 727-424-3968, or complete the form below to send an email. Charli |