Opportunity
of a
Lifetime for
Home Buyers*
→
FAQs about the Tax Credit
→
First-Time Home Buyers Tax Credit
→
Move-Up/Repeat Home Buyers Tax Credit
$8,000 First-Time Home Buyer Tax Credit at a Glance
- The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
- The tax credit does not have to be repaid.
- The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
- The tax credit applies only to homes priced at $800,000 or less.
- The tax credit now applies to sales occurring on or after January 1, 2009 and or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
- For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
- For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance
- To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
- The tax credit does not have to be repaid.
- The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
- The tax credit applies only to homes priced at $800,000 or less.
- The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed prior to July 1, 2010.
- Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
The law defines "first time buyer" as a buyer who has not owned a principal residence
during the 3 year period prior to the purchase. This information is for general
guidance only. This information does not constitute the provision of legal advice,
tax advice, accounting services, investment advice, or professional consulting of
any kind nor should it be construed as such. The information provided herein should
not be used as a substitute for consultation with professional tax, accounting,
legal, or other competent advisers. Before making any decision or taking any action
on this information, you should consult a qualified professional adviser to whom
you have provided all of the facts applicable to your particular situation or question.
None of the tax information on this flyer is intended to be used nor can it be used
by any taxpayer, for the purpose of avoiding penalties that may be imposed on the
taxpayer. The information is provided "as is," with no assurance or guarantee of
completeness, accuracy, or timeliness of the information, and without warranty of
any kind, express or implied, including but not limited to warranties of performance,
merchantability, and fitness for a particular purpose.