Homebuyer Tax Credit
For those of you currently looking to buy Charlotte homes, or you are renting in the area and qualify for financing, the time may never be better for you if you get you home under contract by April 30, 2010. The tax credit for homebuyers has been extended until that date, and a new group of buyers is now eligible.
A credit of up to $8,000 for first-time buyers, originally due to expire without Washington's help, has been extended. This is money that never has to be repaid, provided you live in the home for at least three years.
Homebuyers who currently own their principal residence and have lived in it for at least five consecutive years of the last eight are now also eligible for a credit of up to $6,500.
Things you need to know about the Homebuyer Tax Credit:
- You must have a signed contract for your home no later than April 30, 2010, and the transaction must close before July 1, 2010.
- First-time buyers receive a credit of 10% of the purchase price, up to $8,000. You are considered a first-time buyer if neither you nor your spouse has owned a principal residence in the U.S. within the last 3 years.
- Buyers who owned and lived in their principal residence for at least 5 consecutive years of the last 8 can receive credit of up to $6,500 when they contract to purchase a home before April 30, 2010, and close before July 1, 2010.
- The upper income limit to receive the full credit is raised to $125,000 for individuals and $225,000 for couples.
- If the purchase price is more than $800,000, the buyer is not eligible for the credit.
- There is no minimum income for claiming the credit. You qualify for the full credit even if you won’t owe any taxes for 2009 or 2010.
- You can claim the credit when you file your 2009 or 2010 tax return. And you can even apply the credit to your down payment for the purchase of an FHA-insured home.
Contact me today to help you with your home purchase plans.
