2010 Home Buyer Tax Credit

As we approach the tax season there is good news for many home buyers and sellers with the Homebuyer’s Tax Credit update.

The Homebuyer Tax Credit was recently changed to include homeowners who have lived in their current residence for at least five consecutive years of the last eight. It also continues to be available for those ‘first time’ home buyers who haven’t owned a home in the past three years. The following is a comparison of these credits:

First Time Home Buyer Tax Credit Amount

First Time Home Buyers: $8,000 ($4,000 filing separately or single)
Current Homeowners: $6,500 ($3,250 filing separately or single)

Expiration Date
The home must have a binding purchase agreement completed by April 30, 2010 and must be purchased by June 30, 2010.

Income Limits
$125,000 – single; $250,000 – married; with additional $20,000 phase out amounts on both.

Limit on Cost of Purchased Home
First Time Home Buyers: None
Current Homeowners: $800,000

This tax credit, which can be claimed on a 2009 or 2010 tax return, is a great deal for those thinking about buying a home in the near future! Also, many sellers aren’t aware that if they have lived in their current residence for at least two of the past five years their sale proceeds may be received tax free! With the old rule you had to purchase a property of greater value to shield your gain from taxes but that’s no longer the case! Make sure to consult with your tax advisor for specifics on your situation.

Don’t hesitate to call, text or email me with any questions.

Best wishes for a Merry Christmas and a Happy New Year!

Possibly related posts:

1. Economic Recovery Package/Stimulus Plan affects Lakeville Home Buyers and Owners!
2. Tax Advantages of Home Ownership
3. Lakeville Area Real Estate in 2009
4. Fall 2009 Lakeville Real Estate Update
5. Home Staging Works!

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