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.