First Time Home Buyer Tax Credit Has Been Extended

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 30^th, 2010 and close by June 30^th, 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)