THE HOMEBUYER TAX CREDIT HOW DO I KNOW IF I QUALIFY

    HERE’S A MATRIX OF ALL OF THE REQUIREMENTS TO BE ELIGIBLE FOR THE HOMEBUYER TAX CREDIT:

     

    Feature

     

    December 1 – April 30, 2010 Rules

    As Enacted November 2009

     

     

    First-time Buyer – Amount of Credit

     

     

    $8,000

     

     

    First-time Buyer Definition for Eligibility

     

     

    May not have had an interest in a principal residence for 3 years prior to purchase

     

     

    Current Homeowner – Amount of Credit

     

     

    $6,500

     

    Effective Date – Current Owner

     

     

    December 1, 2009

     

    Current Homeowner Definition of Eligibility

     

     

    Must have used the home sold or being sold as principal residence consecutively for

    5 of the 8 previous years

     

     

    Termination of Credit

     

     

    Contract date on or before April 30, 2010 and

    Settlement before July 1, 2010

     

     

    Binding Contract Rule

     

     

    So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close

     

     

    Income Limits

     

     

    $125,000 – Single

    $250,000 – Married

    Additional $20,000 phase out

     

     

    Limitation on Cost of Purchased Home

     

     

    $800,000

     

    Purchase by a Dependent

     

     

    Ineligible

     

    Anti-Fraud Rule

     

     

    Purchaser must attach documentation of purchase to tax return

     

     

     

    *What are the Income Caps?

    The amount of income someone can earn and qualify for the full amount of the credit has been increased.

    Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

    Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

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