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H O M E B U Y E R   T A X   C R E D I T 
 

What is the Homebuyer Tax Credit?

• $8,000, for First Time Homebuyers - if you purchased your home in 2009 or 2010 prior to June 30 (must be in contract by April 30.

• $6500 for repeat buyers - restrictions apply.

• or not more than 10% of the purchase price of the home.

• You are allowed the full amount of the credit if your modified adjusted gross income (MAGI) is $75,000 or less ($150,000 or less if married filing jointly). The phase-out of the credit begins when your MAGI exceeds $75,000 ($150,000 if married filing jointly). The credit is eliminated completely when your MAGI reaches $95,000 ($170,000 if
  married filing jointly).

• Use Form 5405 to claim the homebuyer credit. The credit may give you a refund even if you do not owe
  any tax.

• For homes purchased in 2008, the credit operates much like an interest-free loan. You generally must repay it over a 15-year period. For homes purchased in 2009, you must repay the credit only if the home ceases to be your main home within the 36-month period beginning on the purchase date.

 

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