Tuesday, January 5, 2010

Tax Credit Reminders

As we get ever closer to the end of the stimulus money, there will undoubtedly be another surge in home sales related to the IRS tax credit. Here’s what you need to know about the extension of the tax credit.

• It is for principal residences only. No second homes and no investment properties.
• First-time homebuyers (buyers, and if married, their spouses, who have not owned their main home within the last 3 years) can get up to $8,000.
• Existing homeowners, who have owned and lived in their home for 5 out of the previous 8 years, can get up to $6500.
• The 8-year period ends on the date of closing.
• Existing homeowners do NOT have to sell their current house – they can rent it out or keep it as a second home.
• You must have a signed contact dated no later than April 30, 2010.
• You must close on the house no later than June 30, 2010.
• The tax credit does not have to be paid back unless you stop using the house as your principal residence or sell it within 3 years of buying it.

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