Homebuyer Tax Credit Extended & Expanded Into 2010
New Rules Summary for the first time home buyer
The $8,000 tax credit will be extended for first-time purchases before April 30th, 2010.
- A first time homebuyer is defined as someone who has not owned a home in the last three years.
- Income limits have also been increased to an adjusted gross income (AGI) of $125,000 for a single buyer and $225,000 for a married couple.
- Provided a contract to purchase a home is signed by April 30th, 2010, the transaction is eligible and must be closed by June 30th, 2010.
- Service members get an additional year to complete a transaction if they are on "qualified official extended duty".
- Homebuyers must be 18 at the time of purchase and may NOT purchase the home from an immediate family member.
New Expanded Rules for Existing Home Owners
A new $6,500 tax credit will be available for repeat buyers who purchase between today and April 30th, 2010. Qualified repeat buyers must have lived in the home sold or being sold as their principal residence within the time line of five consecutive years of the previous eight years.
The same time constraints and income limits apply.
Frequently Asked Questions
Q: If I am buying a home with someone who has already owned a home, but am not married, will I still qualify for the credit?
A: Yes, but please consult a tax professional. If you need a referral, I can certainly direct you to a trusted professional.
Q: Can I use the tax credit as a down payment?
A: No. Although a loan program may allow for it, Oregon state law does not yet allow for the tax credit to be used as a down payment. A down payment may still be a gift from family or close relative.
Q: What kind of house qualifies?
A: The home must be single family (versus multi-family) and must be your new primary residence in order to qualify.
Q: What if I make more than the allowable income?
A: There is a phase-out between an AGI of $125-145,000 for single and $225-245,000 for joint filers. If you earn more than those limits, you will not be eligible for the credit.
Q: Will the credit need to be repaid?
A: No. It is a true tax credit.
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