As we move into the second phase of the homeowner tax credit consumers and real estate agents need to be reminded of just what is in this bill.  You just don’t get the $6500, there are conditions that must be met.  There are key dates involved in this process if you expect to qualify.

Some of the basics are:

If you’re married, you and your spouse also must pass the consecutive-year test.

Homes valued at $800,000 or more do not qualify.

A first-time buyer does not mean a person who has never purchased a home. The IRS defines a first-time buyer as anyone who has not owned a principal residence during the three-year period prior to the purchase.

For married taxpayers, the law tests the homeownership history of both the homebuyer and his/her spouse.

For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse would qualify for the first-time homebuyer tax credit. However, spouses could be eligible for the repeat buyers’ $6,500 credit.

Unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter.

Key Dates:

Nov. 7, 2009: For current homeowners, the home must be purchased on or after Nov. 7, 2009, to qualify for the credit.

April 30, 2010: Purchase and sales agreements must be dated by all parties with a date on or before Friday, April 30.

June 30, 2010: Purchases must close on or before Wednesday, June 30.

For more information contact Helen Adams Realty at 1800-851-5253 or visit our website.

On Friday, November 6, President Obama signed  a bill to extend the $8000 tax credit for first-time home buyers until June 2010.   First-time home buyers will receive the $8000 tax credit if they sign a contract by April 30, 2010 and close on the home by June 30, 2010.  The new bill also will provide a $6500 credit  for homeowners who purchase a new primary residence, and have lived in their current home for at least five of the previous 8 years.

The bill has a few provisions including:

* Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

* Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

The bill also introduced 20 weeks of unemployment benefits in states with jobless rates above 8.5%.  States with unemployment rates below 8.5% would provide 14 weeks of unemployment benefits.

The bill also provides refunds on profit taxes for businesses that had operating losses in 2008 and 2009.

Click below for the First Time Home Buyer Tax Credit Form: