Home Buyer Tax Credit

Who is eligible?

First time home buyers or home-buyers who have not owned a home in the last three years.

Long-time residents who have lived in the same home (as a primary residence) for five of the past eight years.

How much will they be eligble to receive?

The tax credit for first-time home-buyers is 10% of the purchase price up to $8,000.

The tax credit for long-time residents is 10% of the purchase price of the new home up to $6,500.

How does the tax credit work?

A tax credit is a direct reduction in tax liability owed by an individual to the IRS.  If no taxes are owed, the IRS will issue a check for the amount of the tax credit.  You will not receive the $8,000 or $6,500 until after you have purchased your new home, so you cannot use the funds to help with your down payment.

Are there income limitations?

Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 are elible for the full tax credit.  Those who earn more than these amounts may receive a partial credit.

Is there a maximum purchase price?

Qualifying buyers may purchase a property with a maximum sale price of $800,000.

How long will the tax credits be available?

The home must be purchased no later than April 30, 2010 with a binding contract signed by all parties.  The transaction must be closed no later than June 30, 2010.

Are there other restrictions?

In the case of a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify for the tax credit. 
In the case of an individual who has owned property that has NOT been a primary residence, such as a vacation home), that individual would be eligible for the tax credit.

The home buyer may not qualify if the home is purchased from a close relative, including a spouse, parent, grandparent, child or grandchild.

The tax credit applies to 1-4 unit homes as long as the home-buyer lives in one of the units as his or her primary residence.

For more details about the home buyer tax credit, please fill out the form on this page!  Or call 614-431-9111 and one of our experienced agents will help you!