With the stalled housing economy, the Federal Government is encouraging people to buy homes which will help lift the housing crisis. One way in which they are encouraging you to buy is by providing those that have not owned a home an $8,000 tax credit. For those that have owned a home previously, you may stil get up to $6,500!
Here is a summary of how it works.
1 – Tax credit deadline is April 30, 2010.
2 – The “deadline” is has a different meaning. Under the new rule, you would have to have a contract executed by April 30, 2010. You would then have up to another 60 days to close the deal which effectively puts the actual deadline to the end of June.
3 – The amount is still up to $8,000 for first time buyers. You receive 10% of the home purchase price up to a maximum or $8,000
4 – Existing or previous homeowners can also get a tax credit of up to $6,500 as long as they have lived in the home they owned for at least 5 years. This is a big change from First Time Buyers only.
5 – You do not have to buy a home more expensive than your previuos home.
6 – Income limits will be raised to $125,000 for single buyers and $225,00 for married buyers.
7 – Home purchase price limit would be capped at $800,000 making most home purchases eligible. Any home purchased over $800,000 is not eligible.
