First Time Homebuyer Tax Credit Now Available to Existing Homeowners

Posted on April 5, 2010. Filed under: Tax Tips | Tags: , |

First Time Homebuyer Tax Credit Now Available to Existing Homeowners

Many of us are already familiar with the $8,000 tax credit incentive for first-time homebuyers…but did you know this tax credit now includes new homebuyers who already own a home?

The first time homebuyer tax credit now includes up to a $6,500 credit for existing homeowners who are buying a new home.

Who Can Claim the Credit?

To be eligible, long-time residents must have occupied their existing home for five or more years.

Currently, a long-time resident must purchase a new main home, anywhere in the on, or before May 1, 2010, or enter into a binding contract to purchase the property before July 1, 2010.

Some of the general requirements include the following:

  • The purchase price of the home must be less than $800,000;
  • The modified adjusted gross income must be less than $145,000 (greater for married taxpayers);
  • The taxpayer cannot be claimed as a dependent on another person’s tax return;
  • The taxpayer must not be under 18 years old;
  • The purchaser must be a resident;
  • You cannot sell the home before the end of the year in which you purchased it;
  • You cannot have acquired the home from a related person;

To get the credit, you will need to claim the credit on the filing of your 2009 U.S. Individual Income Tax Return (Form 1040).  If you already filed your tax return, you can amend this return to claim the credit.  Filing this additional information is not difficult, but requires that the return is accurate, complete and includes the appropriate documentation.

We can help you prepare your tax return or amended federal income tax return!  Call us at today (305-567-3152)!

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