Did you buy a home last year? First-Time Home Buyer Credits offered by the government could go right to your pocketbook.
2008 First-Time Home Buyers
If you bought a home in 2008, you may qualify for up to $7500 in credits. The 2008 credit received is an interest free loan from the government, and would be paid back in 15 equal payments starting on your 2010 Tax Return (only 1 payment a year-on your tax return). Remember, if you sell or lose your house, the balance would be due at the filing of your next tax return.
2009-2010 First-Time Home Buyers
If you purchased your home in 2009, you may qualify for up to $8000 in credits. Unlike the 2008 credit, this credit does not have to be repaid (unless it ceases to be your main home before 3 years have passed).
Originally, this program was limited to homes purchased before 11/30/09. It has been expanded to homes that have been purchased before 05/01/10, or homes under contract by 4/30/10, to be purchased before 06/30/10.
2009-2010 Long-Time Home Owners
If you purchased your home After 11/06/09, you may qualify for up to $6500 in credits. Even though you are not a First-Time Home Buyer, as long as you lived in your previous home at least 5 consecutive years out of the last 8 years, you might get some benefit. This credit is like the one in 2009, it is your to keep unless it ceases to be your main home before 3 years have passed. What most people don’t realize, you do not have to sell your previous home. Many people convert their older home to a rental, and upgrade to a new house. That is OK. Remember the dates: homes purchased after 11/06/09 – 04/30/10 or under contract during this time to be purchased before 06/30/10.
There are some conditions, check with your tax person to get the nitty-gritty. If you are in the military, inquire about the extended time you have to purchase your home.
