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Buyer Tax Credit
The
$8,000 First-time Home Buyer Tax Credit
The $8,000 tax credit is meant only for first-time home
buyers. For this program the IRS defines a
first-time home buyer as someone who has not owned a
principal residence during the three-year period prior
to the purchase.
As long as the property is not sold within 3 years of
it's initial purchase and continues to be used as the
buyers principal residence, the credit does not have to
be repaid.
The tax credit can be up to $8,000 (10% of the
properties purchase price) and is applicable only to
properties priced $800,000 or less.
The tax credit applies to purchases made after January
1, 2009 and before April 30, 2010. Purchases with
contracts signed before 4/30/10 and completed by
6/30/10 will also qualify.
The income limits for properties purchased between
1/109 and 11/6/09 are $75,000 for singles and $150,000
for married couples filing jointly.
The income limits for properties purchased after
11/6/09 and before 4/30/09 are $125,000 for singles and
$225,00 for married couples filing jointly.
In order to comply with the Anti-fraud Rule, buyers
must attach documentation of their purchase (HUD
statement) to their tax return.
The $6,500 Move-Up / Repeat Home Buyer Tax Credit
Buyers must have owned and lived in their previous home
for five consecutive years out of the last eight to be
eligible.
As long as the property is not sold within 3 years of
it's initial purchase and continues to be used
as the buyer's principal residence, the credit does not
have to be repaid.
The tax credit can be up to a maximum of $6,500 ( or
10% of the property's purchase price ) and is applicable
only to properties priced $800,000 or less.
The tax credit applies to purchases made after
November 6, 2009 and before April 30, 2010.
Purchases with contracts signed before 4/30/10 and
completed by 6/30/10 will also qualify.
The income limits are $125,000 for singles and
$225,000 for married couples filing jointly.
In order to comply with the Anti-fraud Rule, buyers
must attach documentation of their purchase (HUD
statement) to their tax return.
Useful Links for FAQ's about the Tax Credit
Official IRS Website |
RE/MAX Video Call Laurie Fallon today
617-680-7379
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