What is the home buyer tax credit you ask. Well let me tell you a little about it. This is a federal income tax credit that was started last year that would give first time home buyers a tax credit for buying a home. Well this federal income tax credit for homebuyers has been extended and expanded to now include homeowners who wish to "move on" after 5 years of living in their current property, as well as first-time homebuyers.
How smooth is that. If you are thinking about buying a home and you meet certain qualifications it is like the government giving you a chunk of your money back. What better incentive to buy a home that to get cash for doing so. Here are some of the qualifications:
- First-time homebuyers, or those who have not owned in the last three years, can receive up to an $8,000 tax credit
- Homeowners who have lived in a current home consecutively for 5 of the past 8 years can receive up to a $6,500 tax credit
- There may be no future extensions, so all qualified homebuyers are urged to act and have a written, binding contract by April 30, 2010 (close by June 30, 2010)
- Income limits are now $125,000 for singles, $225,000 for married couples with a $20,000 phase-out of the credit for both.