Two Different Home Purchase Credits Are Now Available:
Click here for more information regarding the $8000 tax credit for First Time Home Buyers.
First-time home buyers purchasing a new or resale home for their primary residence are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and on or before April 30, 2010. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner. A limited exception exists for certain contract for deed purchases and installment sale purchases. See the IRS website for more detail.
However, the law also allows home sales occurring by June 30, 2010 to qualify, provided they are due to a binding sales contract in force on or before April 30, 2010.
Persons who are claimed as dependents by other taxpayers or who are under age 18 are not qualified for the tax credit program.
Click here for more information regarding the $6500 tax credit for Move-Up or Repeat Home Buyers.
Qualified move-up or repeat home buyers purchasing a new or resale home for their primary residence are eligible to claim this credit. To qualify for the tax credit, a home purchase must occur on or after November 6, 2009 and on or before April 30, 2010. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.
However, the law also allows home sales occurring by June 30, 2010 to qualify, provided they are due to a binding sales contract in force on or before April 30, 2010.
This information is provided for general guidance only. The information on this site does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information on this web site is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided "as is" with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
When you hear the phrase ‘First-Time Home Buyer Credit’, you would naturally assume that such a credit would only apply to someone who had never purchased a home before. While that’s true, there is a loophole in the qualifications that allows people who do not currently own homes, but have in the past, to qualify for the credit. Also, if you own a vacation or rental property that is not your principal residence, you may also qualify for the credit. Here’s an excerpt from the official Q&A:
What is the definition of a first-time home buyer?
The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
“First-time home buyer” thus includes the following classes:
• People who did not own a principal residence within the last three years, but may have owned one before.
• Unmarried joint purchasers, one of whom has owned a residence within the last three years and one of whom has not. This also includes parents co-purchasing with their children.
• People who own vacation homes that are not their principal residence.
• People who own rental property that is not their principal residence.
If you believe that you qualify as a “first-time home buyer”, then you may be eligible to claim the $8000 tax credit that is available on home purchases through December 1, 2009. If you would like to work with a Coldwell Banker realtor to look for a home, please call us today at 1-888-641-3107. This great opportunity will be ending soon, so please call today!
