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If you thought you missed out on the First-time home buyers tax credit, you are wrong! The federal government has extended the qualification period to first time home buyers from January 1, 2009 and before April 1 2010 (with closing to take place before July 1 2010). Buying a home for the first time, results in an $8,000 home buyer tax credit. For the purposes of claiming the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner. If you and your spouse claim the credit on a joint return (both of you must meet the income and past ownership criteria to qualify), each spouse is treated as having been allowed half of the credit for purposes of repaying the credit. So the total amount claimable is still only $8000 (up to April 30th 2010).
More specifically, the home buyers’ credit is available to qualified individuals who have a modified adjusted gross income (MAGI) of up to $125,000, or $250,000 for couples, up from $75,000 for individuals and $150,000 for couples under the original rules.
And not to exclude those current homeowners who are looking for a replacement primary residence there is also a $6,500 home buying tax credit (up to $3,250 for a married individual filing separately) under the new “long-time resident” provision.
Here are the rules: you must have lived in the same principal residence for a five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased. This new rule also only applies to homes purchased after Nov. 6th 2009.
The 2010 Home Buying Tax Credit won’t last long, you’ve only got a couple of months left to meet the requirements. So, get out there and stimulate the economy and buy a home, after all home ownership is the American Dream!
Ms. Ileane Speaks
Paid Scribe
