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Home Buyers Tax Credit only through 4/30/2010

February 13th, 2010 9:49 AM by Sam Kader

 

  1. $8,000 credit for first-time home buyers. Sales must occur between 1/1/09 through 4/30/10. Purchase contract must be signed by 4/30/10 and completed by 6/30/10.
  2. Income Limits of $125,000 for single and $225,000 for married filing jointly (prior to Nov. 6 09 - limits of $75,000 and $150,000 respectively). Income is defined as Modified Adjusted Gross Income (MAGI).
  3. $6,500 credit is allowed for repeat buyers defined as "long-time resident of the same main home". They must have stayed in their principal residence in five consecutive years.
  4. Sales must occur between 11/6/09 through 4/30/10 and completed by 6/30/09.
  5. Same income limitations as first-time home buyers.
  6. Tax Credit is limited to 10% of the purchase price up to the maximum credit.

The following documents are required in filing for the credit:

  1. Form 5405.
  2. HUD-1 or Settlement Statement.
  3. For repeat buyers, prove of 5 consecutive years residence by property tax records or 1098 interest statements for the 5 year period.
  4. Certificate of occupancy in lieu of HUD-1 for new construction.
  • Credit must be repaid if home buyers sell their houses within a 36-month period after purchase.
  • Credit must be repaid if home buyers convert their principal residence to a rental or business property or foreclosure occurs.

Click here for further information. 

 

Posted in:General
Posted by Sam Kader on February 13th, 2010 9:49 AM

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