The Homebuyer Tax Credit, What Does It Mean For Me?

Who is eligible for the credit?

• First Time Homebuyers
  • Must not have owned a home in the 3 years prior to the purchase
  • Maximum Credit of $8,000
  • Purchase must be completed between January 1, 2009 and April 30, 2010

• Long Time Homebuyers
  • Must have owned and used the same primary residence for 5 consecutive years out of 8 year period ending on the date of the new purchase
  • Maximum Credit of $6,500
  • Purchase must be completed between November 7, 2009 and April 30, 2010

Details of the tax credit:

• Credit Allowed to homebuyers who Sign a binding contract by April 30, 2010 and Close by June 30, 2010.

• The home purchased must be your primary residence.

• No Repayment, unless home ceases to be main home within 3 years of purchase date.

• You must close on the purchase prior to claiming the credit. Taxpayer can elect to claim credit on their prior year return. 2009 purchases can be claimed on a 2008 return, either original or ammended. 2010 purchases can be claimed on a 2009 return, either original or ammended.

• Members of the military serving outside the U.S. on extended duty beginning on or after January 1, 2009, have an extra year to buy a principal residence.

Visit the IRS website for further information on the new tax credit.