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Home Buyer Tax Credit Settlement Deadline Extended to September 30, 2010
First-time, Current Homeowner, and Military Home Buyer Benefits
July 1, 2010
The new, expanded homebuyer tax credit requires that you must buy, or enter into a binding contract to buy a new or replacement principal residence by April 30, 2010, and close on the home by June 30, 2010.
- Single buyers with incomes up to $125,000 and married couples with incomes up to $225,000 may receive the maximum tax credit
(income limits are increased from the 2009 First-Time Home Buyer Tax Credit limits). - Current home owners who buy homes can now also apply, for a maximum credit of $6,500.
- NAR Issue Brief: Homebuyer Tax Credit Comparison Chart >>
- Two special provisions to help military, intelligence and foreign services personnel take advantage of the homebuyer tax credit (read rest of this article).
Did you know that replacement homebuyers do NOT have to sell their current principal residence to qualify for the $6,500 credit as long as other requirements are met? Read this and other details in Tax Credit Q & A from the IRS.
If you or your client purchased a home between January 1, 2009 and November 6, 2009, please visit 2009 First-Time Home Buyer Tax Credit at Realtor.org for new homebuyer tax credit details. For those purchasing between November 7, 2009 and April 10, 2010, please visit The Basics: Extended Home Buyer Tax Credit 2009/2010 at Realtor.org. These helpful resources and the comparison chart can be used to take best advantage of the credit in the months ahead.
Two special provisions in the present tax credit law assist members of the military, intelligence and foreign services in taking advantage of the homebuyer tax credit, who often miss out on full benefits of homeownership due to frequent moves made while serving our country. Armed services members, as well as intelligence service and foreign service personnel, who are on active duty and out of the U.S. for 90 days during any part of 2009, get an additional year to buy their homes, to May 1, 20ll.
Another benefit is a waiver on the time of occupancy of the home purchased with the tax credit. Homebuyers who purchase their home using the tax credit must use that home as a principal residence for a period of no fewer than three years, or must forfeit the entire credit. Military, intelligence and foreign service members do not have to repay the credit if they have to sell their home after fewer than three years occupancy due to official business.
Thank you for responding to the Tax Credit Calls for Action. Once again, you made a real difference for homeownership.
Click Here for More Tax Credit Information and Resources >>
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