Homebuyer Tax Credit

Tax Credits for First Time Homebuyers and Repeat Buyers

Now is a great time if you are thinking of buying. If you had thought your chance to buy was out of reach now because the tax credit expired in November or you already own a home, this news is great for you.

Now repeat homebuyers can cash in on the great deals afforded only to first time homebuyers so far. Starting this November first time homebuyers will have their $8000 tax credit extended and repeat homebuyers will have a chance to gain some credits too for buying a new home.
Here are some frequently asked questions on the new tax credit:

Who qualifies for these tax credits?

For the current homeowner eligibility the homebuyer must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years. For first time home buyer the buyer may not have had an interest in a principal residence for 3 years prior to purchase

What are the income restrictions?

For first time home buyers the income restrictions are $75,000 – single
$150,000 – married. The repeat home buyer restrictions are $125,000 – single
$225,000 – married

How much in tax credit do I get?

For first time home buyers the credit is $8000 and for repeat homebuyers the tax credit is $6500. ]

Is this a deduction or credit and what's the difference?

This is a tax credit not a deduction. A deduction is the amount you can take off your income so you don't have to pay taxes on that. This is a credit meaning you will get this money back to you on your tax refund provided you don't owe anything at that time.

Am I restricted to what kind of home I have to buy?

No, you are allowed to purchase any home as long as the contract is binding before April 30, 2010

 This is great news for all first time homebuyer and repeat homebuyers. If you are intested in learning more about this or want information Seattle homebuyers classes, please contact our offices today! we would love to help you into your new home!