Facts to know regarding the First-Time Homebuyer Credit

Here are the some of the provisions you should know:

1. You must entered into a binding contract to buy a principal residence on or before April 30, 2010. It got extended to 2010!
2. If you meet provision number 1, above; then, you must close on or before June 30, 2010.
3. For purchases made in 2010, you had the choice to claim the deduction in either 2009 or 2010.
4. You qualify for a reduced long time credit if you have lived in the same principal residence for five of the last eight years that ended on the date the new home is purchased and the settlement date is after November 6, 2009.
5. The max credit for long time credit is $6,500. However, for MFS is $3,250.
6. The income limits for purchases after November 6, 2009 is $125,000 for singles and $225,000 for MFJ.
7. No credit is available if the purchase price of the home exceeds $800,000.
8. You must be 18 years old on the date of purchase; only one spouse must meet this requirement.
9. Dependents are not elegible for this credit.
Source: IRS

Hit Counter