Understanding the $8000 / $6500 Tax Credit
Credits Offered to both First Time Home Buyers and on Purchase of a New Primary Residence
There are key dates and conditions involved in this process if you expect to qualify for the $8000 or $6500 tax credit.
Some of the basics are:
· Homes valued at $800,000 or more do not qualify.
· A first-time buyer does not mean a person who has never purchased a home. The IRS defines a first-time buyer as anyone who has not owned a principal residence during the three-year period prior to the purchase.
· If you’re married, you and your spouse must pass the consecutive-year test. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse would qualify for the $8000 first-time homebuyer tax credit. However, you could be eligible for the repeat buyers’ $6,500 credit.
· Unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as if a parent jointly purchases a home with a son or daughter.
Key Dates:
· April 30, 2010: Purchase and sales agreements must be dated by all parties with a date on or before Friday, April 30, 2010.
· June 30, 2010: Purchases must close on or before Wednesday, June 30, 2010.
Here is the tax credit form:
First Time Homebuyer TAX CREDIT FORM
(THE best Charlotte home search available - no kidding!)
Debe Maxwell, CRS/Realtor®/Broker
Broker@TheCharlotteScoop.com
Phone (704) 491-3310
Excellent post, I have passed it on to my mom and her new husband. Thanks!
Thanks Debe for summing it up so nicely! I wasn't aware of the unmarried person buying with a parent, and being able to allocate the credit. That's huge!!
Nice simple explanation!
I like the scribd addition too
your friend in Charlottesville!
Great information for your clients! Thank you for pointing out the information on allocating the credit. I have not seen that mentioned before.
Debe,
Very nice and informational post. Will be great on your outside blog.
Awesome post! Thanks for including it on my outside blog as a contributor! My clients will definitely see the value of this post!
Thanks for the info< well written and presented
Debbie - Simple and clear.... Thank you for posting. I guess the mad short sale push will be in April!