YOUR TALLAHASSEE FLORIDA INFORMATION CONNECTION
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~Extended Home Buyer Tax Credit 2009/2010~
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.
· If you purchased a home between January 1, 2009 and November 6, 2009, please see:
2009 First-Time Home Buyer Tax Credit
Which Properties Are Eligible?
The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, 2-4unit Family (one unit must be owner-occupied), condos, townhomes, houseboats, mobile & modular homes, new construction
How Much Is Available?
· For first-time home buyers, tax credit is $8,000 or 10% of sales price
· For current homeowners, tax credit is $6,500 or 10% of sales price
How is a Buyer’s Credit Amount Determined?
Each home buyer’s tax credit is determined by two additional factors:
· The Price of the Home:
Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.
· The Buyer’s 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.
· These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits.
If you purchased a home between January 1, 2009 and November 6, 2009, please see:
2009 First-Time Home Buyer Tax Credit
If the Buyer(s) Income Exceeds These Limits, Can Buyer(s) Still Get a Credit?
Yes, some buyers may still be eligible for the credit:
· The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly.
· The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.
Can a Buyer Still Qualify If He/She Closes After April 30, 2010?
Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.
Special Rule for Members of Armed Forces
Tax Credit Dates Extended. Please refer to your lender for additional information on dates.
Will the Tax Credit Need to Be Repaid?
If home is sold within 36 months of acquisition, tax credit must be repaid in its entirety.
For more details on the tax credit, refer to:
http://www.federalhousingtaxcredit.com
http://www.irs.gov/newsroom/article/0,,id=204671,00.html
Bill Lord, REALTOR®
Armor Realty of Tallahassee, Inc
(850)933-6066
bill@billlord.com
www.billlord.com
This information is deemed reliable, but not guaranteed.
This information is not intended for the purpose of providing legal, accounting or tax advice or consulting of any kind. Please consult with your tax professional
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