After much speculation, the $8,000 tax credit for first time home buyers was extended by Congress late last week. Many Hoboken condo buyers have emailed me asking for details on the extension. Here is an overview…
$8,000 Tax Credit for First Time Hoboken Home Buyer
The extension is from December 1, 2009 to April 30, 2010. A Hoboken home buyer must have a written binding contract to purchase by April 30, 2010 and the Hoboken condo buyer would have to close by July 1, 2010.
- Amount of Credit: $8,000 ($4,000 married filing separate)
- Tax Credit Eligibility: May have not had interest in a primary residence for the past 3 years prior to this new purchase.
- Current Home Owner Credit: This is the biggest change in the extension. If you currently own a home, wish sell your current home & purchase another, the credit is $6,500 ($3,250 married filing separate). You must have used previous home as a principal residence for 5 of the 8 previous years.
- Income Limits: $125,000 for a single, $225,000 for married couple, additional $20,000 phase out.
- Purchase Price Limits: $800,000
- Anti-Fraud: In order to avoid fraud, the US Government is requiring that all purchasers attach documentation of purchase to their tax return.