Doron F. Eghbali Real Estate Law Blog on Lawyers.com

Tax Credit for First-Time Home Buyers and Others

Tuesday, November 24, 2009 by Doron F. Eghbali

Congress has extended and altered first-time home buyers credit for many. The attributes of this generous credit are as follows:

Up to $8,000 for 10% of cost of the home;
The $8,000 is a true dollar for dollar credit;
Available to single taxpayers with modified adjusted gross income of $125,000 or married couples with incomes of $225,000;
Available to purchases made before July 1, 2010, if purchaser has a contract in place before May 1, 2010;
Unlike the prior credit, this credit is capped i.e. those buying a home after November 6, 2009 for more than $800,000 get no credit at all;
Claim the credit in either 2008 or 2009 if you buy it in 2009;
Claim the credit in 2009 or 2010 if you buy it in 2009.

You are not out of luck, if you have already purchased your first home. You are entitled to $6,500 or 10% of the cost of the home if you owned and lived in the same home in the five out of eight years preceding your new home purchase. And the new home must become the home buyer new principal residence.

Posted at 13:15 PM

Topic: Real Estate