Here are the Details of the extension of the 1st Time Home Buyer Tax Credit
Definition First-Time Home Buyer:
Someone who has not owned a principal residence during the three-year period prior to the purchase.
1. Buyers will have to have a binding sales contract signed by April 30th, 2010 and close by June 30th, 2010.
2. The Tax Credit Does Not Have to Be Repaid!
3. Up to $8,000 or 10% of the purchase price (which ever is less)
4. Max Home Purchase Price $800,000
5. Income Limits (For Full Tax Credit)
a. Single Taxpayer = $125,000/year
b. Married Taxpayers = $225,000
6. Income Limits (For Partial Tax Credit)
a. Single Taxpayer = $144,999
b. Married Taxpayer = $244,999
7. Tax Credit vs. Tax Deduction
a. A Tax Credit is a dollar-for-dollar reduction of what the taxpayer owes.
b. A Tax Deduction is subtracted from the amount of income that is taxed. (i.e. You get a reduction based on your tax bracket)
