First Time Home Buyer Tax Credit &
Existing Home Owners
UPDATE: -The Closing Deadline for the Home Buyer Tax Credit has been extended to September 30th. The extension will apply ONLY to buyers who were in contract by the in-contract deadline of April 30th,2010.
You can qualify for an $8000 tax credit if you (and your spouse, if married) have not owned a home in the three years prior to a purchase.
The new legislation has includes a new provision that gives a tax credit of up to $6,500 to include current homeowners who sign a contract to purchase a new or existing home by April 30, 2010 (with closing to take place by September 30, 2010.
Current homeowners must have owned and used the same home as their principal residence for at least five consecutive years of the eight-year period ending on the date the new residence is purchased.
The home purchased must be your primary residence. However, the law doesn’t require that you sell your old home. You can use it as a second home or a rental and still claim the credit.
Are there any exclusions?
The tax credit is now available to individuals earning up to $125,000—or $250,000 for couples—on homes priced to $800,000
Does the tax credit have to be repaid?
The $8,000 first time home buyer credit, available for homes purchased after Dec. 31, 2008, doesn’t have to be repaid as long as you remain in the home for at least three years. Existing homeowners who qualify for the $6,500 credit don’t have to repay that money, either, as long as they meet the three-year requirement.
First Time Home Buyer Tax Credit and other questions