The Latest On The First-time Homebuyer Tax Credit
Q. What's the latest on the first-time homebuyer tax credit?
A. The tax credit for qualified first-time homebuyers was extended to this spring. Some of the original features are the same, including:
* First-time Buyers can get a credit of as much as 10% of the purchase price, up to $8,000. The home must be your principal residence for the next three consecutive years.
* If you don't pay enough tax to offset the credit, you can get a tax refund.
* You can't purchase the home from your ancestors (parents, grandparents, etc.) or your lineal descendants (children, grandchildren, etc.).
New features include:
* A buyer must have a contract before May 1, 2010 and the sale must close before July 1, 2010.
* Income limits have been raised. Check sites such as www.irs.gov or www.federalhousingtaxcredit.com for details.
* If you buy after November 6, 2009, the credit is available if the home will be your principal residence and the price is less than or equal to $800,000.
* Repeat Buyers who lived in one residence for five consecutive years of the last eight can qualify for a tax credit of as much as 10% of the purchase price, up to $6,500.
* For purchases after November 6, 2009, you can't claim the credit if you buy the home from a spouse or spouse's family members.
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