The tax credit is now available to move-up buyers as well as 1st time home buyers.

 

Effective Dates:

  • The elegibility period for the tax credit is for homes purchased after Nov. 6th, 2009 and before May 1, 2010.  However, home purchases subjuct to a binding sales contract signed by April 30th, 2010, will qualify for the tax credit closing prior to July 1st, 2010.

U.S. Military:

  • For military home buyers serving on qualified official extended duty service outside the U.S. for at least 90 days after December 31st, 2008 and before May 1st, 2010, the deadline for the tax credit is extended an aditional year (through May 1st, 2011). 

Who is Eligible?

  • First-time home buyers, who are define by the law as buyers who have not owned a pricipal residence during the three years prior to the purchase, may be eligible for up to an $8,000 tax credit.
  • Existing home owners who have been residing in their principle residence for five consecutive years out of the last eight and are purchasing a home to be their principle residence ("repeat buyer") may be eligible for up to a $6,500 tax credit.

Income Limits:

  • Home buyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjustment gross imcom (MAGI) is lessthan $125,000.
  • For married couples filing a joint return, the combined income limit is $225,000.
  • Single or had-of-household taxpayers who earn between $125,000 and $145,000, and married $225,000 and $245,000 are eligible to receive a partial credit.
  • The credit is not available for single tax payers whose MAGI is greater than $145,000 and married couples wih MAGI that exceeds $245,000.

Tax Credit is Refundable:

  • A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.
  • For example:
    1. A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receie a $3,000 payment from the government.  If you are due to receive a $1,000 rfund, you would receive $9,000 ( $1,000 pus the $8,000 first-tim home buyer tax credit).
    2. A repeat buyer who owes $5,000 would pay nothing tho the IRS and receive $1,500 back from the government.  If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit).
  • All qualified home buyers can take the credit on their 2009 or 2010 income tax return.

Payback Provisions:

  • The tax crdit is a true credit.  It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.

Types of Homes That Qualify:

  • All single-family homes or condominiums with a purchase price of less than $800,000 qualify, provided that the home will be used as their principal residence.  Vacation home and rental property do NOT qualify.

For more informatin, please contact:

 

Bobby Green

McGraw Realtor

8040 S. Sheridan

Tulsa, OK 74133

918-406-1853 cell

918-488-1463 office