It’s still home buyers tax credit time — Don’t miss out!

There’s some real confusion out there about the most current home tax credit:  It’s not just for first time home buyers any more.  And it’s not going to be available much longer.

Thinking about buying your first home?  Or selling your present home because it’s too big — or not big enough?  Or maybe you’ve been thinking of moving to the sunshine of Arizona or Florida.

If so, it’s important to take a look at the 2009/2010 Extended Home Buyer Tax Credit to understand how the credit has been extended and expanded. Now is the time to save money and get the single family home, condo or co-op you’ve always wanted. 

First — What kind of a home buyer are you? You’re considered a “first- time” home buyer if you have never owned a home or have not owned a primary residence within the last 3 years.   The First Time Home Buyers Tax Credit from last year has been extended.  So you may still be eligible for a tax credit of up to $8,000 to go out and buy a home.   

What many people do not realize is that this tax credit has also been expanded to include “move-up” home buyers.  You are considered a “move-up” home buyer if you have owned and lived in your current home consecutively as a primary residence for 5 of the past 8 years. And you may be eligible for a new tax credit of $6,500 to purchase a home.

The deadline to take advantage of either tax credit is the same. In order to qualify for either the first-time buyer credit or move-up buyer credit, you must have a sales contract on the home you are purchasing by April 30, 2010. You will need to close on your purchase no later than June 30, 2010.

It’s also important to understand that your tax credit is not automatic. Eligibility for either credit is based on certain income guidelines. But the good news is, these guidelines have been expanded so that more home buyers are now eligible to receive full and partial tax credit. 

To receive the full $8,000 or $6,500 credit under the expanded guidelines, a single buyer can now earn up to $125,000 annually. Home buyers filing jointly can now have earnings of up to $245,000. The amount of the credit decreases incrementally for single buyers earning between $125,000 and $145,000. The same applies to home buyers filing jointly with earnings between $225,000 and $245,000.