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