Congress Expands and Extends the First-Time Home Buyer Tax Credit
The complete list of qualifying criteria is posted on the IRS website. Be sure to review it with a tax professional to determine your eligibility.
Amount of the tax credit (free money) - 10% of the purchase price or $8,000 which ever is less
Who's Eligible? - First-time homebuyers purchasing a principal residences only. The credit has been expanded to “move up buyers” or people who have owned a home as a primary residence for 5 of the last 8 years. The cap for these people will be $6,500.
Income Limits - $125k for single people and 225k for married
Expiration Date - April 30th, 2010. Purchase agreements must be signed by all parties on or before this date. The transaction must close by June 30th, 2010.
Repayment - The credit does NOT have to be repaid if the property is not sold or rented in the first three years.
