2010 First-Time Homebuyer Credit

Are you a MN first time home buyer wishing you took advantage of 2009’s $8,000 First-Time Homebuyer Credit? Don’t feel bad, you’re not alone!

Have you heard the good news?

The First-Time Homebuyer Credit was extended! The credit remains at $8,000 for a first-time homebuyer.

The new law went into effect November 2009 and extends the deadline for qualifying home purchases until April 30, 2010.  If a buyer enters into a purchase agreement by April 30, 2010, the buyer has until June 30, 2010, to close on the property.  Buyers have the option of claiming the credit on either their 2009 or 2010 tax returns.

That’s not the only bit of good news!

Income limits have gone up too!  The full credit will be available to buyers with adjusted gross incomes up to $125,000 or $225,000 (joint filers).  First-time homebuyers with adjusted gross incomes between $125,000 and $145,000, or $225,000 and $245,000 (joint filers) are eligible for a reduced credit.  However, buyers with higher incomes do not qualify.

First-time homebuyers aren’t the only ones being rewarded in 2010!

The new credit also provides a “long-time resident” credit of up to $6,500 to homebuyers who do not qualify as “first-time buyers.”  To be eligible, a buyer must have owned and used the same home as a principal / primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence.

You should know, however, that with the new tax credit comes three new requirements.  First, your dependents are not eligible to claim the credit.  Second, no credit is available if the purchase price of a home is more than $800,000.  Lastly, a buyer must be at least 18 years of age on the date of purchase.

If you’re a first time homebuyer and want to take advantage of the tax credit, you likely have a number of questions.  The Minnesota Real Estate Team offers free classes for  first time home buyers in Minnesota to prepare you for the next step in your adult life.

To answer any of your real estate questions, call The Minnesota Real Estate Team at 952-649-1456.  Or if you’re in listening in the Minnesota area, tune into The Minnesota Real Estate Show on Saturday’s from 11AM to NOON on KTLK, 100.3 FM.

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