First Time Homebuyer Credit
Thursday, March 17 2011 @ 11:57 AM CDT
The original provision – a tax deduction of up to $8,000 – applied only to people buying their first homes between April 8, 2008, and December 1, 2009. The cut-off date has now been extended to April 30, 2010. Also, a similar credit – up to $6,500 – is now available to current homeowners who buy new principal residences in the same time frame. However, those homeowners must have lived in their previous homes for a five-year consecutive period in the previous eight years before the date they buy the new home.
For either credit:
• New home can cost no more than $800,000
• Individual buyers must have income of $125,000 or less
• Joint tax-filers must have combined income of $225,000 or less
Visit the IRS website for more information.