First-Time Homebuyer Credit – Who is Eligible?
If you’re looking to buy a home, you may want to look into getting the federal government’s first time homebuyer credit. This credit, which originally expired on November 30, 2009, now gives first-time home buyers an $8000 credit if they buy a home before April 30th, 2010.
So the question is, who is eligible? Are you?
- * You’re eligible if this is your first time buying a home and you enter into a binding contract to buy a home on or before April 30, 2010 and close on the sale by June 30, 2010.
- * You’re also eligible for the full credit of $8,000 if you make less than $125,000 a year for single filers. The original income ceiling was $75,000. Married couples filing jointly can now receive full credit if they make less than $225,000. The original ceiling was $150,000.
- * You also qualify for the credit even if you’ve owned a home before, just not as your principal home during the three years prior to your home purchase.
- * It should also be noted that married couples do not qualify for the credit unless both have not previously owned a home or owned a primary residence in the past three years.
- * You’re only eligible if you’re 18 years or older or your spouse is 18 years or older.
- * The first-time home buyer credit is equal to 10% of your home’s purchase price with a limit of $8,000 and if your home costs more than $80,000, you’re not eligible for the credit.
- * Additionally, if you buy the home from a relative, you’re not eligible for the credit.
- * It should also be noted that military personnel and some federal employees serving outside the country have an additional year to qualify for the credit.
- * If you bought your home at any time during 2009, you can claim the credit when you file your 2009 taxes in 2010. And if you purchased your home on or before November 6, 2009, you can amend your 2008 tax return and claim the credit.
- * Finally, if you purchase a mobile home or trailer they both qualify for the credit, as long as they’re your principal home. Motor homes and RVs do not qualify for the credit.
- * The first time homebuyer credit is paid it’s applied to the taxes you owe, thus lowering your income taxes by up to $8,000. If you are in a low income bracket or income tax exempt, you can still file for the credit and receive it in the form of a refund.
If you haven’t taken advantage of the first-time home buyer credit and are in the market for a new home, you still have time. However, time is running out. Go out and find the home of your dreams!
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