If you didn’t already know, the homebuyer tax credit countdown has started for those who are looking to sign on the dotted line for their homes.
This means, if you want to take advantage of thousands of dollars in credits for the 2010 tax year, now is the time to get out and begin looking for your home.
What’s Involved in the Homebuyer Tax Credit?
Since the homebuyer tax credit changed some since 2009, let’s take a look at who can take advantage of this credit and when exactly the cutoff date is.
- If you’re buying your first home… then you could take advantage of up to an $8,000 tax credit if you sign for your home by April 30, 2010. Qualifying as a first-time home buyer means having not been in a home for at least three years. Also, in order to qualify, you need to have an income that maxes out at $75,000 for an individual or $150,000 for a couple.
- If you’re upgrading from your current home… then you could take advantage of up to a $6,500 tax credit if you sign for your home by April 30, 2010. Qualify for this tax credit requires having an adjusted gross income that doesn’t exceed $125,000 for individuals and $225,000 for married couples.
Both credits are 10 percent of the cost of the home up to $80,000 or 65,000, respectively.
The Next Deadline
After you sign for you home on April 30, your next job will be to actually close on your home. The deadline for closing on the home is June 30, 2010. If you don’t do it by then, you won’t be able to take advantage of the credit. Getting a decent mortgage has never been easier, so now may be the time to act.
Keep in mind the closing on a home can take anywhere from 60 to 45 days, so the sooner you get out and find your home, the better your chances are of getting your hands on this massive tax credit.