Posted in Real Estate on March 3rd, 2010 at 5:27 PM

There’s happy news for current homeowners: If you intend to sell your home and buy another in 2009 or 2010, you may be eligible for a federal tax credit of up to $6,500. The Extended Homebuyer Tax Credit legislation, passed in November 2009, also shares the wealth with first-time homebuyers—up to $8,000.

Are you eligible?

You’re considered a current homeowner under IRS rules if you’ve used the home being sold or vacated as a principal residence for five consecutive years within the last eight. You’re a first-time homebuyer if you or your spouse haven’t owned a home for the three years before your purchase. 

In both cases, keep in mind that the credit amount you’re eligible for begins to decrease for joint filers if your modified adjusted gross income is $225,000 ($125,000 for individuals); it disappears at $245,000 ($145,000 for individuals).

 Posted in Real Estate on February 18th, 2010 at 1:48 PM

Just an update about the Home Buyer Tax Credit of up to $8000. which is still available for first time home buyers purchasing on or after January 1, 2009 and on or before April 30, 2010. In cases where a binding sales contract is signed by April 30, 2010, a home purchased completed by June 30, 2010 will quality.

A tax credit of up to $6,500 is available for repeat home buyers who have owned a home for five consecutive years out of the prior eight years. The repeat home buyer tax credit applies to houses sold after November 6, 2009 and on or before April 30, 2010. In cases were a binding sales contract is signed by 4/30/2010, a home purchase completed by 6/30/2010 will qualify.

Income limits of $125,000 for individuals and $225,000 for married couples.

Home purchases in 2010 may be claimed on an amended 2009 income tax return.

Neither the first-time nor the repeat home buyer tax credits have to be repaid unless the home is sold or ceases to be used as the buyer's principal residence within three years after the initial purchase.