Version 3.0 of the first time home buyer tax credit expires in 100 days.
The end of the first time home buyer $8,000 tax credit has been pushed forward to spring, requiring homebuyers to be under contract for a home no later than April 30, 2010, and to be closed no later than June 30, 2010.
In addition, “move-up” buyers were also added to the program’s eligibility list. This means that you don’t have to be a first-time home buyer to be eligible for the tax credit. If you’ve lived in your home for 5 of the last 8 years, you meet the IRS requirements. Tax credits of up to $6,500 on the “move-up” or “long-term residents” program.
The basic eligibility requirements are still the same:
- You can’t purchase the home from a parent, spouse, or child
- You can’t purchase the home from an entity in which they’re a majority owner
- You can’t acquire the home by gift or inheritance
- All parties to the purchase must meet eligibility requirements
There are still some notable changes.
First, the subject property’s sales price may not exceed $800,000. Over $800k? Fully ineligible. The good: household income thresholds have been raised to $125,000 for single-filers and $225,500 for joint-filers.
And lastly, don’t forget that the program is a true tax credit — not a deduction. This means that a tax filer who’s eligible for the full $8,00 credit and whose “normal” tax liability totals $5,000 would receive a $3,000 refund from the U.S. Treasury at tax time.
The complete list of qualifying criteria is posted on the IRS website. Review it with a tax professional to determine your eligibility. Then mark your calendar for April 30, 2010.
There’s just 100 days to go.
