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New Home Buyer Tax Credit ! Who Qualifies for the Extended Credit?

Who Qualifies for the Extended Credit?

First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010, or Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight get the Tax Credit.

How Much Is Available?

The maximum allowable tax credit for first-time home buyers is $8,000.                                                               The maximum allowable tax credit for current homeowners is $6,500.

Which Properties Are Eligible? : Home Buyer Tax Credit may be applied to “Primary Residences,” including: single-family homes, condos, townhomes, and co-ops. Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

Will the Tax Credit Need to Be Repaid? : No! The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

Buyers can check out my website CathyWilder.com

Published Thursday, November 12, 2009 3:06 PM by Phil & Cathy Wilder
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