If you’ve always wanted to purchase your first home, the newly extended first-time homebuyer tax credit could help you move from renting to owning. For a limited time, qualified first-time buyers may receive a tax credit up to $8,000 Here’s a summary of the tax credit. As always, consult your tax professional for guidance about your personal situation.
|Description||For purchase of an owner-occupied residence|
|Credit Limits||– Credit is for 10% of the purchase price
– Maximum credit of $8,000
– The credit is claimed on your federal tax return
|Eligibility||– A first-time buyer is anyone who has not owned a home for the past three years
– Income limits (for homes purchased after Nov. 6, 2009):
– Home purchase price cannot exceed $800,000
|Requirements||– Must retain home as principal residence for 36 months (except for active duty military transfers, members of the Foreign Service and intelligence community)
– Available on single-family detached homes, multi-family homes (if owner occupied), townhouses and condominiums, as well as new construction
|Purchase & Closing Deadlines||– Purchase contract must be signed by April 30, 2010
– Close on or before June 30, 2010
Federal Renovation Tax Credit
You might also be eligible for certain energy-efficient home improvements — such as windows and doors, insulation, roofs, non-solar water heaters, or heating, ventilation and air conditioning.
For qualified energy-efficient improvements to your primary residence, you can claim 30% of renovation costs on your federal tax return, up to a maximum of $1,500. The work must be completed after January 1, 2009 and on or before December 31, 2010.
Please consult with your tax professional for details.