First Time Homebuyer Tax Credit – Who Qualifies and How Does it Work?
Have you heard about the $8,000 tax credit for first time home buyers? Wondering if you qualify? Read below for the highlights.
$8,000 tax credit qualifications:
* To qualify, you must be purchasing a primary residence with a purchase price of $800,000 or less.
* You must have an executed agreement of sale by April 30th, 2010 and go to settlement by June 30, 2010.
* Income limits are $125,000 for single buyers and $225,000 for married couples.
* Current homeowners are eligible for a $6,500 tax credit provided you have lived in the home you are selling as a principle residence for five consecutive years.
How it works:
* All single family homes (including condo’s and co-ops) purchased as a primary residence will qualify for the tax credit if purchased by April 30, 2010 for less than $800,000 and closed by June 30, 2010.
* You are eligible for the full $8,000 if your adjusted gross income does not exceed $125,000 for single buyers or $225,000 for married couples. The tax credit is decreased for those who earn above the limit, but a portion of the tax credit is still available until the maximum limit is reached – $145,000 for an individual and $245,000 for joint income.
* It is important to know that the amount of your credit will first be applied to any tax liability for the year of the purchase and you will receive the difference as a refund. So if you had a $3,000 tax liability you would receive a check for the difference, or $5,000.
With interest rates at historical lows, the current tax credit for home buyers is a truly unique opportunity. So if you’re looking for a new home or your first home, this is a great time to transition. Low mortgage rates and free money from the government make for an excellent incentive to buy a home.
Have additional questions or need a referral for a great Realtor? Email me at tara.m.gore@wellsfargo.com or visit my website at rel=nofollow [http://www.taramgore.com]www.taramgore.com.
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About the Author: Tara Gore is a home mortgage consultant working for Wells Fargo in beautiful historic Center City Philadelphia. She specializes in new construction financing and works closely with various developers as their preferred lender. Please feel free to contact her with questions at taramgore.com.
