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Federal $8,000 Tax Credit Explained

Posted on January 11, 2010 by tim in Buying, First Time Home Buyer, Tax Credit

On November 6, 2009, President Obama signed a bill to extend the tax credit for first-time home buyers through June 30, 2010. The bill also opens up opportunities for others who are not buying a home for the first time.

Who Gets What?

First-Time Homebuyers can receive a credit for up to 10% of the purchase price of the home, with a maximum available credit of $8,000.

Current Owners: This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010. Military deadline: The deadline is extended by a year for members of the military who have served outside the U.S. for at least 90 days from Jan. 1, 2009, to May 1, 2010.

What are the Income Caps?

Individuals with annual incomes up to $125,000 and joint filers with incomes up to $225,000 qualify for the full credit. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.

Which price points will qualify for credit?

The credit can be used for any home that is listed for less than $800,000.

Click here for a PDF outlining the differences between the new extended tax credit and the original $8,000 tax credit that expired in November of 2009.

Click here for FAQs regarding the extended tax credit.

If you have additional questions regarding the current tax credit, please feel free contact Team Annett at 513-527-3060 or teamannett@gmail.com .


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