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.