The $8,000 First Time Home Buyer Tax Credit and the $6,500 Repeat Buyer Tax Credit expired April 30, 2010.

Please be sure to check back with OwnACondo.com for any updates that may become available about these popular programs. Thank you for your interest.

If you’re a potential first-time buyer, there are lots of new reasons for you take the step into condo ownership.
How many? How about 8,000 new reasons! It’s the new $8,000 tax credit for first time homebuyers and it includes condos and townhouses, in addition to single family homes.

This temporary—yes, temporary—tax credit is now available for first-time purchasers as part of the federal government’s economic stimulus. It was scheduled to expire Nov. 30, 2009 but has now been extended to April 30, 2010.

With this program, qualified first-time home buyers can claim a credit of 10% of the home’s purchase price, up to $8,000 maximum, on their federal income tax return for that year.

Here’s why it’s so important to get started today. Researching, shopping and selecting your new home takes time. So does obtaining financing and bringing the transaction to closing. Don’t think that the deadline date of April 30, 2010 is far off. It’s not.

Additional details of the First Time Home Buyer Tax Credit include:

• Qualified buyers will claim the credit on their federal tax return in the year in which they made their purchase. If your tax return shows that you are due a refund, the refund will increase by $8,000. If your return shows that you owe taxes, the $8,000 credit can be used to satisfy all or a portion of what you owe.
• Only first-time homebuyers can take advantage of the $8,000 tax credit. A first-time buyer is defined under the tax credit plan as an individual who has not owned a home in the last three years. Eligible properties include anything that will be used as a principal single-family residence, including condominiums and townhouses.
• There are income qualifications on the $8,000 first time home buyer tax credit. Individuals with an adjusted gross income up to $75,000 (or $150,000 if filing jointly) are eligible for the full tax credit. Those earning more (up to $95,000 for individuals and $170,000 if filing jointly) are eligible for a reduced portion of the credit. The credit is not available if income is above $95,000 (single) or $170,000 (married).
• The new the $8,000 first time home buyer tax credit does not have to be repaid if the buyer stays in the home at least three years. But if the home is sold before that, the entire amount of the credit is recaptured on the sale.

With the announcement of the extension of the First Time Home Buyer Tax credit came the introduction of the brand new tax credit for repeat or move-up buyers. The same April 30, 2010 deadline applies.

With this program, qualified repeat home buyers can claim a credit of 10% of the home’s purchase price, up to $6,500 maximum on their federal income tax return for that year. Here are some basic details:

• Qualified buyers will claim the credit on their federal tax return in the year in which they made their purchase. If your tax return shows that you are due a refund, the refund will increase by $6,500. If your return shows that you owe taxes, the $6,500 credit can be used to satisfy all or a portion of what you owe.

• A repeat, or move-up, buyer is defined by the government as “a home owner who has owned and resided in a home for at least five consecutive years prior to the purchase date (of the new property).” Eligible properties include anything that will be used as a principal single-family residence, including condominiums and townhomes.
• There are income qualifications on the Repeat Buyer Tax Credit. Individuals with an adjusted gross income up to $125,000 (or $225,000 if filing jointly) are eligible for the full tax credit. The tax credit amount is reduced for buyers with income above those amounts. Please contact one of our condo financing specialists for more information.