The government has extended and expanded the tax credit for first-time buyers. You now have until April 30, 2010 to sign a contract and qualify. And starting November 7, many existing home owners also qualify.
Am I eligible?
If you have not owned a home in the past three years, you may qualify. That’s right, even if you or your spouse owned a home more than three years ago, you are still considered first-time homebuyers and may qualify for the tax credit.
Existing homeowners thinking about buying a new home also be eligible for an up to $6,500 tax credit.
(For details, visit FederalHousingTaxCredit.com.)
Am I entitled to the full $8,000 home-buying tax credit?
It depends on your modified adjusted gross income (MAGI) and current eligibility.
How does the home-buying tax credit work?
It is a direct tax credit that reduces the amount of taxes you owe. It’s different from a tax deduction, which only reduces the amount of your income that is subject to tax.
If your eligible tax credit is more than what you owe in taxes, the balance will be refunded to you. (See an example scenario at FederalHousingTaxCredit.com.)
This is not a loan. You do not have to repay this tax credit.
How long does the program last?
The federal home-buying tax credit applies to homes contracted for sale by 04/30/10 and closed on by 06/30/10.
For additional details on the federal home-buying tax credit, visit FederalHousingTaxCredit.com.
Filed under: First Time Home Buyer Tax Credit, First Time Home Buyers, hampton roads, williamsburg va
[...] Should the Homebuyer Tax Credit Be Extended ? Posted on March 2, 2010 by mrwilliamsburg The current tax credit for first time and move-up homebuyers is scheduled to end on June 30th if buyers are under contract by April 30, 2010. There is growing pressure on Congress to renew the tax credit again. The original tax credit was for the first time homebuyer was passed in 2008. It was expanded in 2009 and increased the credit from $7,500 to $8,000 and included a provision for move-up buyers which provides for a $6,500 federal tax credit. To see more details about the tax credit, see one of my earlier columns, “Homebuyer’s Tax Credit Extended and Expanded.” and here [...]