Do you qualify for the First Time Home Buyer Tax Credit for a home in Vero Beach?

On November 6, 2009, Congress voted to extend and expand the First-Time Home Buyer Tax Credit program. till April 30, 2010.

To qualify for the $8,000 tax credit homebuyers must be under contract for a home no later than April 30, 2010, and to be closed no later than June 30, 2010.

In addition, “move-up” buyers were added to the program’s eligibility list.  To be a "move-up  you had to have lived in your home for 5 of the last 8 years. Move-up buyers are capped at a total tax credit of $6,500.

Eligibility for either program is simple:

• You can’t purchase the home from a parent, spouse, or child

• You can’t purchase the home from an entity in which they’re a majority owner

• You can’t acquire the home by gift or inheritance

• All parties to the purchase must meet eligibility requirements

• The property’s sales price may not exceed $800,000.

• Household income thresholds have been raised to $125,000 for single-filers and $225,500 for joint-filers.

The program is a true tax credit — not a deduction. This means that a tax filer who’s eligible for the full $8,000 credit and whose “normal” tax liability totals $5,000 would receive a $3,000 refund from the U.S. Treasury at tax time.
The complete list of qualifying criteria is posted on the IRS website. Review it with a tax professional to determine your eligibility. Then mark your calendar for April 30, 2010.