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Home Buyer Credit

Here’s the latest we are hearing on the updated/extended home buyer credit; more to come once it is made official…

  1. The tax credit would be up to $8,000 for first-time home buyers and up to $6,500 for move-up buyers for homes purchased between December 1, 2009 to April 30, 2010 and the transaction would have to close by June 30, 2010.
  2. Move-up buyers will be eligible, so long as the home they are leaving has been used as their principal residence for 5 years or more.
  3. The income limits for both first-time home buyers and move-up buyers would be $125,000 for single returns and $225,000 joint returns.
  4. Cost of the home may not exceed $800,000 to be eligible.
  5. For purchases made in 2010, taxpayers would be able to claim the credit on their 2009 income tax return.
  6. Home buyers would not have to repay the credit, provided the home remains their principal residence for 36 months after the purchase date.
  7. The amendment includes a military waiver provision, meaning the recapture provision would not apply in the case of a member of the Armed Forces, military intelligence or Foreign Service who is on qualified official extended duty. In addition, members of the military who have been deployed overseas for 90 days or more in 2008 or 2009 would have until April 30, 2011, to claim the home buyer tax credit.
  8. The amendment also includes anti-fraud language that provides math authority to the IRS to do greater oversight during the processing of the return rather than waiting for an audit situation. The amendment requires the taxpayer claiming the credit to be 18 or older as well as requiring a HUD-1 settlement statement to be attached when claiming the credit.

If you would like to discuss your home loan options, please contact me today!

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