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The Hetrick Team Makes Buying and Selling Simple
Home Buyer Tax Credit
If you purchase a home by April 30, 2010, you may qualify for a tax credit. It is payable even if it exceeds the amount of tax you owe.
The credit is different depending on whether you are a “First-Time Home Buyer” or a “Current Home Owner.”
| First Time Homebuyer Tax Credit |
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Amount is 10% of the Purchase Price up to $8,000 ($4,000 if married filing separately). |
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You may not have had an interest in a principal residence for 3 years prior to purchase. |
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Income limits for maximum credit are $125,000 (Single) or $225,000 (Married), with an additional $20,000 phase out of credit. |
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You must have a written binding contract to purchase in effect on or before April 30, 2010. |
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You must close by July 1, 2010. |
| Homebuyer Tax Credit for Current Homeowner |
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Amount is 10% of Purchase Price up to $6,500 ($3,250 if married filing separately). |
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You must have used the qualifying home as a principal residence consecutively for 5 of the previous 8 years. |
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Income limits for maximum credit are $125,000 (Single) or $225,000 (Married), with an additional $20,000 phase out of credit. |
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You must have a written binding contract to purchase in effect between November 7, 2009 and April 30, 2010. |
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You must close by July 1, 2010. |
These tax credits apply to home purchases up to $800,000.
You do not have to repay the tax credits if you occupy the home you purchase for three or more years. However, if the property is sold during the three-year period, the full amount of credit will be recouped on the sale. For more information, contact your tax professional.
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