The First-Time Homebuyer Tax Credit is set to expire soon. Home buyers must have to sign a purchase agreement by April 30 and close by June 30 to take advantage of the $8,000 tax credit.
The income limit for claiming the full tax credit for single tax payers is $125,00 and $225,000 for married
tax payers filing a joint return.
Homes purchased for up to $800,000 are eligible for the credit. A first-time buyer is defined as a buyer who has not owned a principal residence during the three-year period prior to the purchase. The tax credit does not require repayment if you live in this residence for three or more years.
The Existing Homeowner Tax Credit is also set to expire. If you already own a home, but you want to move up, you may qualify for the $6,500 tax credit. To be eligible for this credit, you must have lived in your current home for five consecutive years out of the last eight and must purchase a new or existing home by April 30 and close escrow by July 1. You do not need to sell your current home to qualify for this credit.
To claim the tax credit use the IRS Form 5405. You will also need to supply the IRS with a copy of your HUD-1 settlement statement to verify your purchase.
If you are interested in purchasing a home in South Lake Tahoe and taking advantage of the tax credits, give South Lake Tahoe real estate agent Brent Johnson a call before it is too late!
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