Tax Credit Details

People have been asking, so here are the details of the extended tax credit:

When is the new deadline?
-April 30, 2010
-If a written, binding contract to purchase a home is in effect on April 30, 2010, the qualified buyer will have until June 30, 2010, to close

What is the maximum allowable credit available to a qualified buyer?
-Up to $8,000 for a first-time homebuyer ($4,000 married, filing separately)
-Up to $6,500 for a current homeowner ($3,250 married, filing separately)

Who qualifies for the extended credit?
-First-time homebuyers who purchase homes between November 7, 2009, and April 30, 2010, to use as their principal residences; homebuyer and spouse cannot have owned a principal residence for three years prior to home purchase
-Current homeowners who purchase homes between November 7, 2009, and April 30, 2010, to use as their principal residences and have used their previous home as a principal residence for five consecutive years of the past eight years
-In addition to previously-required documentation, homebuyers must also include documentation of purchase with tax returns to secure the credit
*It is important to note that you cannot purchase a home from your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse in order to claim the tax credit.

What are the income limits for the newly-extended credit?
-$125,000 for single buyers and $225,000 for married couples (additional $20,000 phase-out allows for partial tax credit)
-Homebuyers who earn more than the maximum qualifying income ($145,000 for singles, $245,000 for married couples filing jointly) are not eligible for the credit

What is the maximum home purchase price?-The maximum home purchase price is $800,000
Will the extended credit need to be repaid?
-The credit does not have to be repaid as long as the buyer occupies the purchased home as his or her principal residence for more than three years
-If the home is sold within three years of purchase, the full credit amount must be repaid

*Information provided by the National Association of Realtors. Visit NAR or a certified tax attorney for additional details

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