The new tax credit expands the credit to those who currently own a home. The grant is up to $6,500 for those purchasing a new or existing home between November 7, 2009 and April 30, 2010.
How do Home Sellers Qualify?Current home owners qualify for the tax credit if they are purchasing a home between November 7, 2009 and April 30, 2010, and have used the home being sold or vacated as a principal residence for five consecutive years within the last eight. If you have been waiting to sell, this is a great time to take advantage of an additional $6,500 incentive!! The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops. Each individual home buyer’s tax credit is determined by two factors:
- The price of the home.
- The buyer’s income.
Under the Extended Home Buyer Tax Credit, the credit is for an amount up to 10% of the purchase price of the house so it can only be awarded on homes purchased for $800,000 or less.
Under the Extended Home Buyer Tax Credit, which went into effect on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.
Under the Extended Home Buyer Tax Credit, as long as a written, binding contract is in effect on, or before, April 30, 2010, the purchaser will have until July 1, 2010 to close.This tax credit will not need to be repaid if the home is occupied by the buyer for three years or more after purchase. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.
If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.