| How to Save Thousands on Your New Home | | | | dollar credit and your tax bill is 4,000, you may |
| Purchase | | | | receive a refund in cash for the balance.o Home |
| The First Time Home Buyers tax credit law was | | | | purchase price is capped at $800,000. |
| just recently extended through May 1, 2010. The | | | | The pertinent points for repeat home buyers:o |
| part of the new law that has been | | | | Must have been living in one residence for five of |
| under-reported is that the new law extends tax | | | | the last eight years.o The tax credit is up to 10% |
| credit to those who are veterans of home buying. | | | | of the purchase price, but is capped at $6,500 for |
| The first time home buyer tax credits basically | | | | repeat buyers.o Married couples modified income |
| remain the same as the one that was supposed | | | | limit begins to phase out at $225,000 and is |
| to have expired November 30, 2009. It provides | | | | capped at $245,000.o No retroactivity- Must |
| first time home buyers with an eight thousand | | | | purchase between November 6, 2009 and close |
| dollar tax credit on the purchase of a qualifying | | | | before July 1, 2010 with a contract in hand before |
| home. The rules for repeat buyers are a little | | | | May 1, 2010. |
| different-so read on to get the details. | | | | To qualify for both first and repeat buyers credits |
| Here is a quick review of the pertinent points of | | | | you must provide proof of purchase-usually a |
| the Home Buyer Tax Credit for the first time | | | | HUD-1 form with your tax return. Your new |
| home buyer:o Up to 10% tax credit on the | | | | home does not have to be a detached single |
| purchase price of a new home-maxing out at | | | | family home, but you do have to live there as |
| $8,000.00o Must not have owned a home for at | | | | your principal dwelling-and proof of occupancy |
| least the three years before the qualifying | | | | may be required if you get audited. |
| purchase.o If a couple, both individuals must meet | | | | So for those of you who thought the gravy train |
| above criteria.o They must live in the new home | | | | was over, this gives you new life to find that |
| for three years as their principal residence.o You | | | | qualifying new home-go forth and do your part |
| cannot purchase the home from a parent, | | | | for the real estate community and buy a new |
| grandparent or your children.o If your tax credit is | | | | home-but only buy what you can afford. That tax |
| above your tax liability, you may receive a refund | | | | credit will be of no benefit to you in a year or |
| check for the balance. (If you qualify for 8,000 | | | | two if you are struggling to make your payment. |