Did you buy a house from 1 January until 30 April 2010? If so, you might be eligible for one of the two tax credits: first-time home buyer tax credit and repeat home buyer tax credit;
The home buyer’s first-time tax credit is worth 10 per cent of the home’s purchase price to a maximum of $8,000. Eligibility for this means that, in the three years before the new home purchase, you would not have had to own a principal residence. Checkout buyers in Birmingham for more info.
The repeat home buyer tax credit is valued at up to 10 percent of the purchase price, up to $6,500 at most. Eligibility for this means that for at least five consecutive years, they would have had to own and live in the same home.
First, the property ‘s price must be under $800,000 to qualify for the home buyer tax credit. Second, you must have signed a contract to buy the home by 1 May 2010 with an initial closing date of 30 June, and an final closing date on or before 30 September, in order to claim it on your 2010 taxes. Your amended adjusted gross income (MAGI) had to be less than $125,000 for single persons or $225,000 for joint filers to be financially eligible for this. A discounted loan is eligible for home buyers with up to $145,000 of MAGI, or $245,000 for married homeowners.
The following are the requisite documents:
A copy of your declaration of settlement, or HUD-1, provided at the close.
For newly built homes, a dated copy of the occupancy certificate that displays your name and the home address.
Copies of documents showing you have lived in your previous residence for five consecutive years over the past eight years, for repeat buyers. Required documents include certificates of interest in mortgages, property tax reports or statements of insurance for homeowners.
After you have applied, plan to wait until 6 weeks before getting your IRS check.
2008 Begins of tax credit Payback
The Housing and Economic Recovery Act of 2008 offered up to $7,500 interest-free loan in 2008 in the form of a refundable tax credit for eligible first-time homebuyers with a principal residence with a two-year grace period. Now that 2010, it’s time to begin repaying the interest-free loan back.
In 2008, the tax credit was in fact an interest-free loan of 15 years with a 2 year grace period. In order to determine what you owe, divide by 15 what amount you got in 2008, and this is the amount you’ll have to pay back.
For example, if you qualified for the full $7,500 then for the next 15 years you would have to repay $500 per year.
If you bought your house in 2008 and re-sold it, you ‘re going to owe even more, because you’re going to have to repay the entire interest-free loan amount at once.