You probably have heard the Home Buyer Tax Credit has been extended thru June 30, 2010. Here are the details:

 

1. The $8,000 tax credit is available to “First Time” Home Buyers who have not owned a primary residence in the past three years.

 

2. A new $6,500 tax credit is available to “Current” Home Owners who have lived in their primary residence for 5 consecutive years of the last 8 years.

 

3. Although the $6,500 has been labeled a “Move-Up” credit, there is nothing in the law forcing anybody to buy a bigger or more expensive home. You can downsize or upsize and still get the credit.

 

4. Your adjusted Gross Income cannot exceed $125,000 if you file taxes as a single, or $225,000 if you are married filing jointly.

 

5. You must be under contract to purchase by April 30th, 2010 and will need to close by July 1, 2010.

 

6. The cost of the purchased home must be less than $800,000.

 

7. This is a tax credit. If the home buyer owes the IRS zero dollars, they will get a check for $8,000 (or $6,500) from the IRS. Pretty nice!

 

Contact us if you would like to learn how these tax credits can be used to help you.