Revised Guidelines for 2010 Homebuyer Tax Credits

by Cathie Harney, Your Local Real Estate Expert

It's already 2010 and April 30th will be here before you know it. So what's so important about the next 100 plus days? As a potential homebuyer you may be able to take advantage of the federal tax credit credits that were recently revised, but only if you are under contract on or before April 30, 2010.

Here is a quick overview of the guidelines for both existing homeowners and first time homebuyers. For more information on how to qualify for these tax incentives, give me a call and I will review your particular situation and see how to maximize your possible benefits.

GENERAL GUIDELINES FOR EXISTING HOMEOWNERS

• The $6,500 tax credit is available for homes purchased before April 30, 2010 and closed by June 30, 2010.
• The $6,500 tax credit is for primary residences only.
• The $6,500 tax credit is for any homebuyer who has lived in their current residence for 5 consecutive years out of the 8 years they have owned their home.

GENERAL GUIDELINES FOR FIRST-TIME HOMEBUYERS

• The $8,000 tax credit is now available for homes purchased before April 30, 2010 and closed by June 30, 2010.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the tax credit.
• The $8,000 tax credit is for first-time homebuyers or someone who has not owned a principal residence during the three-year period prior to the purchase.
• Homebuyer(s) must live in the home as their primary residence for at least 3 years.

Cathie Harney, Your Local Real Estate Expert