HOME BUYER TAX CREDIT
WHO IS ELIGIBLE?
*First-time homebuyers, who are defined by the law as buyers who have not owned a principal residence during the 3-year period prior to the purchase, may be eligible for up to an $8,000 tax credit.
*Existing home owner’s who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence ("repeat buyer"), may be eligible for up to a $6,500 tax credit.
All U.S. citizens who file taxes are eligible to participate in the program.
INCOME LIMITS:
Homebuyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.
For married couples filing a joint return, the combined income limit is $225,000.
Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
EFFECTIVE DATES:
The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.
PAYBACK PROVISIONS:
The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.
*First-time homebuyers, who are defined by the law as buyers who have not owned a principal residence during the 3-year period prior to the purchase, may be eligible for up to an $8,000 tax credit.
*Existing home owner’s who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence ("repeat buyer"), may be eligible for up to a $6,500 tax credit.
All U.S. citizens who file taxes are eligible to participate in the program.
INCOME LIMITS:
Homebuyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.
For married couples filing a joint return, the combined income limit is $225,000.
Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
EFFECTIVE DATES:
The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.
PAYBACK PROVISIONS:
The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.
EXTENSION OF TAX CREDIT DEADLINES
Qualified service members who are ordered on a period of official extended duty, these dates are extended for one year. For these home buyers, the tax credit applies to sales with a binding sales contract in place on or before April 30, 2011 and closed by June 30, 2011.
A person who is forced to return to the U.S. for medical reasons before completing an assignment of at least 90 days of qualified official extended duty outside the United States may qualify for the one-year extension.
Call Robyn Di Franco, Loan Officer
Office: 985-612-2782 or Cell: 504-453-0166
2053 E. Gause Blvd, Suite 150, Slidell, LA 70461
(PLEASE CONSULT YOUR TAX PREPARER ABOUT OTHER DETAILS AND PROVISIONS)