$8,000 First Time Homebuyer Tax Credit - Gorman & Gorman Home Loans

$8,000 & $6,500 Homebuyer Tax Credits
The American Recovery and Reinvestment Act of 2009 gave a huge incentive to "first time" homebuyers - to buy soon. In November 2009, Congress and the President extended and expanded the homebuying tax credit. If you or someone you know wants to take advantage of this incentive from the government when buying a home, get on it quickly. The clock is ticking. Download IRS Tax Form 5405 if you are eligible for the Homebuyer Credit.

$8,000 First-time Home Buyer Tax Credit at a Glance

The $8,000 tax credit is for first-time home buyers only.
For the tax credit 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.
The tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
The tax credit applies only to homes priced at $800,000 or less.
The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

For more detailed information on the first-time homebuyer tax credit: http://www.federalhousingtaxcredit.com/faq1.php

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
The tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
The tax credit applies only to homes priced at $800,000 or less.
The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

For more detailed information on the move-up buyer tax credit: http://www.federalhousingtaxcredit.com/faq2.php