The Housing Tax Credit Simplified!

The Federal Income Tax Credit for homebuyers made easy!

Who is eligible?
Homebuyers purchasing a home (new or resale). To claim the tax credit, home must be contracted by April 30,2010 and close between january 1, 2010 and June 30, 2010.

What is the maximum tax credit?
$8000 for the first time buyer or $6500 for a repeat homebuyer

Whats the calculation for the tax credit?
Multiply the purchase price of the home by 10% (.1) to calculate the tax credit you will receive.

Whats the definition of a first-time homebuyer?
A first time homebuyer cannot have owned or claimed a primary residence in the last three years. Vacation homes do not count. If married, both parties must not have owned or claimed a primary residence in the last three years.

Whats the definition of a repeat homebuyer?
Repeat gomebuyers have owned and lived in their previous or current home for five consecutive years out of the last eight years. Purchasing home needs to be under $800000. In order to qualify for the full tax credit, income is limited to up to $125,000 for single taxpayers and $225,000 for married couples.

Does the tax credit have to be repaid?
Not as long as the buyer stays in the home for a period of three years. If the buyer moves from the home prior to that, there will be a recapture of the credit. Individuals should consult with a tax preparer to discuss how much would need to be repaid and the reason for the move. In some circumstances, some or all of the tax credi will not have to be repaid.