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Lawrence Board of REALTORS®
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| Take advantage of the Extended $8,000 tax Credit...or the Newly Expanded $6,500 Credit Now! |
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Now extended and expanded. Buy a home between now and April 30, and the U.S.
government has a substantial incentive for you. Current homeowners can receive a $6,500 tax credit, while first-time buyers are still eligible for an $8,000 credit*. With the increased number of eligible buyers and the extended deadline, this tax credit is the home-buying opportunity of a lifetime. For qualification details, work with a REALTOR®, a member of the National Association of REALTORS®. They can explain the process and show you options that best fit your situation. For more information, visit and bookmark
HouseLogic.com/homebuyertaxcredit.
* Worker, Homeownership & Business Act of 2009. Restrictions may apply, not all home buyers will qualify for the full amount.
HOW TO GET THE TAX CREDIT
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Verify that you are a qualified first-time buyer under IRS guidelines to receive the $8,000 tax credit, or Verify that you qualify as an existing owner of a home purchasing a primary residence to receive the $6,500 tax credit. (see below for qualifying guidelines)
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Who Qualifies?
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- First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
- Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
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To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.
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Which Properties Are Eligible?
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The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
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How Much Will the Credit Be?
The maximum allowable credit for first-time home buyers is $8,000.
The maximum allowable credit for current homeowners is $6,500.
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. How is a Buyer's Credit Amount Determined?
- Each home buyer’s tax credit is determined by two additional factors:
- Price
Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.
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Buyer Income
Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.
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These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.
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If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
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Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.
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Can a Buyer Still Qualify If He/She Closes After April 30, 2010?
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Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.
. Will the Tax Credit Need to Be Repaid?
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No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.
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