Details of the tax credit includes:
FIRST-TIME BUYERS who have not had interest in a principal residence for three years are still eligible, and the maximum amount remains the same – $8,000 (or $4,000 for married couples filing separately).
LONG-TIME HOMEOWNERS may be eligible to claim the homebuyer credit if they meet certain criteria and can show they owned their primary residence for a consecutive five-year period during the eight years ending on the date the new home is purchased. The long-time homeowner tax credit is up to $6,500 (or $3,250 for married couples filing separately). Download “Now's the Time to Make a Move! Hurry to Get the $6,500 Tax Credit” pdf. Get more details from the IRS at www.IRS.gov .
Qualifying buyers must sign a purchase agreement by April 30, 2010, and close before July 1, 2010.
The tax credit may not be used to purchase a home for more than $800,000. Vacation homes are ineligible.
The income limits to earn the maximum for both tax credits have been raised to $125,000 for single buyers and $225,000 for married couples filing jointly.
All buyers who want to get the credit must include documentation of the purchase on their tax returns using IRS revised Form 5404 available from www.irs.gov .
The credit is extended until May 1, 2011, for members of the military serving outside the United States for at least 90 days.
Above information quoted from Illinois Assciation of Realtors.
