Are you looking to purchase a new home or are you ready to move? Buying First Home tax credits are available until April 30th of this year.
Here are a few requirements:
Refundable: The credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill – the amount of withholding they paid during the year- was less than that amount.
Purchase Date: To qualify for the credit, the purchase must be made by April 30, 2010. Buyers may not have owned a primary home (lived in it) for the past three years to qualify as â??first timeâ? buyer. They must also live in the house as their primary residence for at least three years, or they will be obligated to pay back the credit. Homeowners who have lived in a current home consecutively for 5 of the past 8 years can receive up to a $6,500 tax credit.
Paperwork: Applying for the credit will be easy – or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.
Income Restrictions: To qualify, buyers must make less than $125,000 for singles or $225,000 for couples. (Higher-income buyers may receive a partial credit.)
The legislation also includes language to help members of the military take advantage of the credit including a later deadline and the ability to sell their home without having to repay the credit if they are deployed to another location within three years of purchasing the home.
Here is a quick video to help explain more: