Home Buyer Tax Credit
The Home Buyer Tax Credit is not just for first-time home buyers anymore. The tax credit does provide a credit of 10% of the purchase price up to $8,000 for first-time home buyers, meaning buyers who have not owned a home they lived in for three years at the time they close on their new purchase. But the Home Buyer Tax Credit also provides a tax credit of up to 10% of the purchase price up to $6,500 for “step-up” home buyers, who are long-time homeowners who have owned a home that they lived in for at least five consecutive years out the last eight.
Both the $8,000 first-time home buyer tax credit and the $6,500 long-time homeowner tax credit are available to purchasers who earn up to $125,000 for single taxpayers or $225,000 for married couples filing jointly, although taxpayers who earn within $20,000 of those income limits can obtain a partial tax credit.
But the Home Buyer Tax Credit is only available to purchasers who are in contract by April 30, 2010 and close by June 30, 2010, so your time to claim the credit is limited.
If you still have questions, please feel free to ask anyone of our REALTORS (click here to view a list of our REALTORS).