Buying your first home? Take Advantage of the $8,000 Federal Income Tax Credit
Update: Extended housing tax credit gives you a reason to buy now! Great news for homebuyers: The federal government has extended a tax credit of up to $8,000 for qualified homebuyers!* That combined with current low financing from HomeAmerican Mortgage*** means there’s never been a better time to buy a Richmond American home!
Tax credit for first-time homebuyers
Qualified first-time buyers who contract on a home no later than April 30, 2010 and who close by June 30, 2010, may receive a tax credit of up to 10% of the purchase price of your new home (up to $8,000).
Tax credit now open to current homeowners
As part of the extension of the housing tax credit, qualified homeowners who contract on a home no later than April 30, 2010 and who close by June 30, 2010, may receive a tax credit of up to 10% of the purchase price of your new home (up to $6,500). To be eligible, at the time of purchase you must have owned and lived in your current principal residence for five consecutive years during the last eight years.
Other requirements for first-time and current homebuyers
This tax credit requires the purchase of a primary residence. Current or first-time homebuyers who take advantage of this credit are not required to pay it back if they stay in their new home more than three years. The income** limitations for qualified buyers are $125,000 for individuals and $225,000 for joint filers; however, a partial credit may apply for purchasers with higher incomes.** In addition, the purchase price of the home may not exceed $800,000. Other conditions and limitations apply to the tax credit, so contact a tax professional today to find out if you are eligible.
Attention Military:
Individuals who serve on qualified official extended duty and service† outside of the United States for at least 90 days after December 31, 2008 and before May 1, 2010, may get an extra year to take advantage of the tax credit. Conditions and limitations apply, so contact a tax professional today to see if you qualify.
Old Tax Credit Info:
Congress has recently passed a federal income tax credit for first-time homebuyers that is the lesser of either 10% of the home's cost or $8,000.
This will be available to qualified first-time home buyers for the purchase of a principal residence between January 1, 2009 and before December 1, 2009.
In addition, first-time home buyers can now use the $8,000 federal tax credit to help cover a down payment and other upfront costs if they are taking out a loan backed by the Federal Housing Administration.
A lender, accountant or attorney can give you more information on how this may apply to you. Contact us today at 602-803-4496 to take advantage of it.
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For help buying or selling a home or investment property anywhere in Gilbert, Arizona, or the surrounding area, please give us a call at 602-803-4496.
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