Home Buying Tax Credit – FAQ

Posted on March 17, 2010. Filed under: Current Homeowners, First Time Buyers |

Over the past couple weeks I have had more and more conversations with people who are unclear on the details, time frame, and availability of the current home buying tax credit. With only 45 days left to get a signed contract in place, I wanted to lay out the specifics here.

$8000 Tax Credit for First Time Home Buyer

If you have not owned a home in the past three years, you can receive a tax credit of 10% of the purchase price up to $8,000 for a couple purchasing a home. Single filers can earn up to $125,000, and couples filing jointly can earn up to $225,000. Homes must be under contract by April 30, 2010, and closed by June 30, 2010.

$6,500 Tax Credit for Non First Time Home Buyer

If you have owned a home for five consecutive of the past eight years, you may qualify for a tax credit of $6,500. Single filers can earn up to $125,000, and couples filing jointly can earn up to $225,000. Homes must be under contract by April 30, 2010, and closed by June 30, 2010.

The link below contains a list of frequently asked questions about the Tax Credit:

http://www.federalhousingtaxcredit.com/faq1.php

Best,

JLC