The Home Buyers’ Tax Credit: What You Need to Know
arif says:
To curb fraud, the legislation also requires taxpayers to provide documentation proving that they purchased a home and requires taxpayers to be at least 18 to claim the credit. There had been reports of people as young as 4 years old claiming the original credit
The legislation extends a tax credit of up to $8,000 for qualifying first-time home buyers that was previously set to expire on Nov. 30. If you’re a first-time home buyer, defined as one who has had no ownership interest in a principal residence in the United States in the three years previous to the purchase of a home, you qualify for the credit if you purchase a home or have one under contract by April 30, 2010. (You have an additional 60 days to close after that date.)
If you’re an existing homeowner, you qualify for the new tax credit of up to $6,500 if you have lived in your current residence for five years or more out of the previous eight years and purchase a home or sign a sales contract for one from Nov. 7 to the end of April of next year.
Both credits are available for the purchase of “principal residences” with prices up to $800,000. The credits start to phase out for individuals with incomes above $125,000 and for joint filers who earn more than $225,000.Read more at bucks.blogs.nytimes.com
