Federal Tax Credit
Many of you have heard and read about the $8,000 first time homebuyer credit. There are some very important things you want to know about the program so I've created a link with a very easy to read Q & A about the program. The tax credit, combined with low interest rates and dropping home prices, offers a great opportunity  for you to get a great deal on your first home. Call me anytime for more information at 904-252-5181 or find me on the web at allaboutavondale.com. Thanks!

The federal income tax credit for homebuyers has been extended and expanded to now include homeowners who wish to move to another home after 5 years of living in their current property, as well as first-time homebuyers.

 

  • First-time homebuyers, or those who have not owned in the last three years, can receive up to an $8,000 tax credit
  • Homeowners who have lived in a current home consecutively for 5 of the past 8 years can receive up to a $6,500 tax credit
  • There may be no future extensions, so all qualified homebuyers are urged to act and have a written, binding contract by April 30, 2010 (close by June 30, 2010)
  • Income limits are now $125,000 for singles, $225,000 for married couples with a $20,000 phase-out of the credit for both.

 

The following chart provides more information:

  

Feature

For First-Time Homebuyers

 For Current Qualifying Homeowners

Amount of Credit

$8,000 ($4,000) married filing separate)

$6,500 ($3,250 married filing separate)

Eligibility

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

Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years

Termination of Credit

Purchases after April 30, 2010

Purchases after April 30, 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 June 30, 2010 to close

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

Income Limits

$125,000 - Single

$225,000 - Married

Additional $20,000 Phase Out

$125,000 - Single

$225,000 - Married

Additional $20,000 Phase Out

Limitation on Cost of Home Purchased

$800,000

$800,000

Purchase Made by a Dependent

 

Ineligible

 

Ineligible

 

Additional Requirements

Purchaser must attach documentation of purchase to tax return

Purchaser must attach documentation of purchase to tax return