The tax credit for homebuyers will be coming to an end shortly. Here is what you need to know to get in on it:
Deadline:
A binding contract must be complete by April 30, 2010 and escrow must be closed by June 30, 2010. In layman’s terms, you need to have an agreed-upon purchase price in writing by April 30 and you’ll have an additional two months to go through the process of actually making the purchase official.
Qualifications:
First-time home buyer tax credit: The first-time homebuyer tax credit of 10 percent of the purchase price up to a maximum of $8,000 is available to those who have not owned a home in the past three years.
Existing home buyer tax credit: The existing homebuyer tax credit of $6,500 is available to homeowners who have owned and occupied their home for five out of the past eight years.
There are income limits for both of the tax credits so make sure to check out the IRS Web site for more information and to find out how to file for the tax credit.
For more information on the tax credit, check out the following blog posts:
- $8,000 Tax Credit Extended Through April 30, 2010
- The Tax Credit Landslide: Homebuyer Credit Extended though June 2010
- $8,000 Tax Credit is Extended through April 30, 2010… and it’s been Expanded!
- Is Homebuyer Credit Really Helping the Buyer?