Up to $8000 Tax Credit Extended, PLUS...$6500 For Current Home Owners!

Samantha M. Taylor, Realtor

Here are the major points of the policy extension/change:

1. How Much Is Available

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

2. Home Purchase Price Limits

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or   less.

3. Who Is Eligle

Current homeowners qualify if they have lived in their current homes for 5 consecutive years during the last 8 years.  You don't have to have been in the same home, as long as you have been the owner occupant of a home for 5 consecutive years.

First time homebuyers qualify as long as they have not owned a home or any real property in the last 3 years.

4. Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits.

4.  Repayment of Tax Credit

No monies need to be re-paid as long as he/she occupies the home for three years or more.  If the property is sold during this 3 year period, the full amount of the credit will be recouped at the sale  of the home.