Tax Credit 2010



TaxCreditNewton.com


(2 minute video)

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:


 

?         Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.


 

?         Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.


 

Who Qualifies for the Extended Credit?


 

?         First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.


 

?         Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.


 

To qualify as a "first-time home buyer" the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.


 

Which Properties Are Eligible?


 

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.


 

How Much Is Available?


 

The maximum allowable credit for first-time home buyers is $8,000.


 

The maximum allowable credit for current homeowners is $6,500.


 

How is a Buyer's Credit Amount Determined?


 

Each home buyer's tax credit is determined by two additional factors:


 

1.     The price of the home.


 

2.     The buyer's income.


 

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.


 

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000-may receive the maximum tax credit.