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Home buyers still have the opportunity to take advantage of the $8,000 first-time home buyer or $6,500 repeat buyer tax credit. But they need to act quickly because the sales contract must be signed by April 30 to qualify.
"It's not too late to take advantage of the home buyer tax credit," said NAHB Chairman Bob Jones. “There are plenty of existing homes on the market."
Buyers who sign a contract by the April 30 deadline then must close on the home by June 30 to qualify for the credit. More people than ever before are eligible for a home buyer tax credit; NAHB estimates that close to 70% of all potential buyers should qualify. "First-time" buyers don't have to be buying their first home ever; they are defined by the IRS as those who have not owned a principal residence in the past three years. Repeat buyers may be eligible for the new $6,500 credit, as long as they have owned and lived in their current home at least five consecutive years out of the past eight. Income limits were increased for the current credits, enabling single taxpayers with incomes up to $125,000 and married couples earning up to $225,000 to potentially qualify for a full credit. NAHB's Web site at www.federalhousingtaxcredit.com provides basic information about the credit, detailed question and answer sections and links to additional home-buying resources for consumers. "If you've been considering buying a home for any reason, the home buyer tax credit, in addition to historically low interest rates and competitive home prices, make it an ideal time to buy," said Jones. |
