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Homebuyer Tax Credit Information


Congress has extended the First-Time Home Buyer Tax Credit of up to $8,000* to first-time home buyers until April 30, 2010.  To qualify, you must enter into a binding contract on a principal residence on or before April 30, 2010.  If you enter into a binding contract by April 30, 2010, you must close on the home on or before June 30, 2010.

There is also a reduced Home-Buyer tax credit for current homeowners of up to $6,500*.  You may qualify if you have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.

This bill has special provisions for members of the military, and those in the Foreign Service and Intelligence Community who have unique circumstances:

- This Tax credit has been extended for one year for military personnel who are serving outside of the United States for a minimum of 90 days during the period beginning December 31, 2008 and ending May 1, 2010.


- This eliminates the 36-month recapture requirement for military personnel, including members of the Foreign Service and intelligence community who are forced to sell or move from a tax credit home as a result of an official extended duty of service.


Those on Active military or extended overseas duty have until on or before April 30, 2011 to have a binding sales contract in place.

 

*Other restrictions may apply.  To find out more information regarding the qualification or claiming of this tax credit, visit www.irs.gov.

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