Given that the rules for the first-time homebuyer credit have gone through several revisions, it can be challenging to know whether your potential purchase qualifies. As a result, you may want to keep the following list of requirements in mind as you house hunt:
- You have from now until April 30, 2010 to enter into a binding contract to purchase a home and until June 30, 2010 to settle on that purchase.
- Both first-time homebuyers (those who have not owned a principal residence during the 3 years up to the date of purchase) and long-time homeowners (those who have owned and used the same home as their principal residence for 5 of the past 8 years) may be eligible.
- Long-time homeowners are not required to sell their current residence but they must move into and use their new home as their principal residence in order for the purchase to qualify.
- Those with modified AGIs (MAGI) up to $125,000 ($225,00 for those filing jointly) are eligible for the full credit. Those with MAGIs between $125,000 and $145,000 ($225,000 and $245,000 for joint filers) are eligible for a reduced credit. Those with higher incomes do not qualify.
- No credit is available if the purchase price of the home is over $800,000.
- Dependents are not eligible to claim the credit.
- The purchaser must be at least 18 years old on the date of the purchase.
For qualifying purchases in 2010, taxpayers have the option of claiming the credit on their 2009 or 2010 tax returns. For specifics about how to claim the credit, please visit: http://www.examiner.com/x-31990-Chicago-Income-Tax-Examiner~y2010m1d22-Filing-a-return-with-the-1st-time-homebuyer-credit.
Comments