Home Buyers Tax Credit Extended in Parker Colorado

Home Buyers Tax Credit Extended

Congress recently passed legislation was that will extend the First Time Home Buyers Tax Credit. This credit also provides additional tax breaks up to $6,500 for qualified repeat home buyers. With interest rates remaining low this tax credit extension is a bonus for those looking to buy their first home or for those looking to move up.  Below are some key highlights to the tax credit for each group.

First Time Home Buyer

• The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.

• The tax credit does not have to be repaid.

• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000 and only applies to homes priced at $800,000 or less.

• The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

• For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.

• For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

Repeat Home Buyer

• To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.

• The tax credit does not have to be repaid.

• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500 and only applies to homes priced at $800,000 or less.

• The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.

• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

Contact me to begin the process of obtaining financing for your home purchase.

Patrick Dozler – Mortgage Specialist

FirsTier Bank

Direct: 303.439.6818

Cell: 303.598.8606