WELCOME HOME

   

212 Caitlyn Drive
Hampton, GA 30228

(770)477-9995     (404)291-6993
(770)478-7797 fax

 

 

Government

Tax Credit

 

 

THANK YOU FOR VISITING MILLENNIUM 2000 REALTY - WE REALLY APPRECIATE YOU.

Natalie Russell (404) 291-6993- Direct

If you or anyone you know is interested in buying, selling, renting, or leasing please contact Natalie.      

 

Time is running out to claim your $8,000 tax credit! (image)

$8,000 Tax Credit

 Extended

Who is eligible to claim the $8,000 tax credit?


First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and on or before April 30, 2010. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner. A limited exception exists for certain contract for deed purchases and installment sale purchases. See the IRS website for more detail.
However, the law also allows home sales occurring by June 30, 2010 to qualify, provided they are due to a binding sales contract in force on or before April 30, 2010.

Persons who are claimed as dependents by other taxpayers or who are under age 18 are not qualified for the tax credit program.

 

 

 

 

$8000 First-Time Homebuyer Tax Credit FAQ
When do I need to purchase to qualify?
If you buy a home between Jan. 1 2009 and April 30, 2010 and close escrow during these dates, you will qualify for an $8,000 tax credit - as long as it is your primary residence and you meet the simple requirements.

Are there any income limits for claiming the tax credit?
Yes. For sales occurring after November 6, 2009, the income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $125,000 for single taxpayers and $225,000 for married taxpayers filing a joint return. The phase-out range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
How does the law define "first-time homebuyer"?
The law defines "first-time homebuyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
How do I apply for the credit?
Taxpayers should use IRS Tax Form 5405  to claim the first-time homebuyer tax credit.
Does the credit have to be repaid?
No. Unlike a similar tax credit passed in 2008, this $8,000 tax credit does not have to
be repaid to the IRS.
Can I use the tax credit toward a down payment or other closing costs?
Yes. An announcement made May 29 allows the tax credit to be used toward purchase costs of a home, including down payment in some cases. This can be done one of two ways. First, buyers using an FHA-approved lender can sell their anticipated tax credit to the lender and use the proceeds to immediately apply the tax credit to any down payment above the minimum down payment of 3.5 percent required with FHA-insured mortgages. Second, buyers who receive financing through state housing finance agencies and certain non-profits will be able to use the tax credit for their down payments via a tax credit advance loan that does not result in any cash back to the buyer. In both cases, buyers can only access the credit after filing their tax returns with the IRS.

 Information in part Courtesy of National Home Builders Association


Main Office
212 Caitlyn Drive * Hampton, GA 30228
770-477-9995 office | 770-478-7797 fax

       

Millennium 2000 Realty, Inc © 2006
Designed by: Creative Conceptions