Home Buyers Tax Credit

31 January 2010 View Comments By Nitin Kumar Jain

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If you are the buying or planning to buy a home for the very first-time i.e. you have not owned a house in last three years, then you are eligible to receive up to an $8,000 tax credit. If you currently own a house and planning on buying a new home then you are also eligible to receive a $6500 tax credit.

Let us tell you how and why you should get Home Buyer Tax Credit?

Recently, Obama administration signed into law the Worker, Homeownership, and Business Assistance Act of 2009, under which the first time home buyers can claim a tax credit of $8000 and current homeowners can buy a new home can claim $6500 tax credit.

Important points

First time home buyers:

First-time buyers, those who have not owned a home for three years, can claim $8,000 credit.
Income limits: $125,000 a year for individuals, $225,000 a year for married couples.
Homes that cost more than $800,000 aren’t eligible for the credit.
Credit is available for primary residences only
Must be 18 years old for claiming the credit.

Current homeowners:

Current homeowners can claim a $6,500 credit as long as the property they are vacating has been their primary residence for at least five consecutive years out of the last eight years.
Income limits: $125,000 a year for individuals, $225,000 a year for married couples.
Homes that cost more than $800,000 aren’t eligible for the credit.

Informative video for more details

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