First-time home buyers and move-up buyers have another great reason to get on the path to purchasing a new home! The benefit to first-time homebuyers is a tax credit up to $8,000 and for move-up buyers a tax credit up to $6,500. But this opportunity ends in April.
Tom Kunz, President and CEO of Century 21 Real Estate LLC, comments on the legislation.
- Between November 7, 2009 and April 30, 2010, homebuyers that have a signed binding contract to purchase a home may be eligible for the tax credit. The transaction must close no more than 60 days after April 30, 2010.
- For first-time homebuyers may receive a credit of 10 percent of the purchase price up to the $8,000 tax credit amount. If you have never owned a home before or have not owned a principal residence in the last three years, you are considered a first-time homebuyer.
- For the "Move Up" consumer, a tax credit of $6,500 is available for homeowners who have lived in their current residence for at least five of the past eight years. The homebuyers can receive a 10 percent credit up to $6,500 when they contract to purchase a home between now and April 30, 2010, and close no more than 60 days after April 30, 2010.
The tax credit does not have to be repaid provided you live in the new home for a minimum of three years. Military families are exempt from this stipulation.
Before you decide to use the Extended Homebuyer Tax Credit, please remember to consult with a tax professional.
