TAX CREDIT DEADLINE - What You Need to Know
As part of its plan to stimulate the U.S. housing market, Congress last fall approved the Extended Home Buyer Tax Credit. This extended the deadline for the First-Time Home Buyer Tax Credit until April 30, 2010 and expanded it to include repeat buyers.
What's the deadline? To qualify, first-time and repeat buyers must have a binding written contract by April 30 and close by June 30, 2010.
How much money is available? The maximum allowable credit for first-time home buyers is $8,000. The maximum for repeat buyers, also referred to in the legislation as "long-time residents," is $6,500.
What properties are eligible? The Extended Home Buyer Tax Credit may be applied to primary residences, including single-family homes, condos, townhomes and co-ops.
How do buyers get the benefit? Buyers can file an amended 2009 tax return, or apply the credit on their 2010 return, filed on or before April 15, 2011.
Who qualifies? To qualify as a first-time home buyer, the purchaser or his or her spouse may not have owned a residence during the three years prior to the purchase. To qualify as a repeat buyer, current home owners must have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
Are there income limits? The full credit will be available to taxpayers with modified adjusted gross incomes up to $125,000 or $225,000 for joint filers.
