Information on the Home Buyer Tax Credit in Arkansas

Time is about to run out on the Tax Credit given to buyers either purchasing their first time home (haven’t owned a home for a 3-year period) or if you are a repeat buyer that has been in your current home for 5 of the last 8 years.

FAQ on the $8000 First Time Home Buyer Tax Credit (CLICK LINK FOR MORE INFO.) quick facts below…

  • The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.

  • The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.

  • The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

FAQ for Repeat “Move-up” Buyers – $6500 Tax Credit

  • Buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
  • The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
  • The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
  • The tax credit applies only to homes priced at $800,000 or less.  
  • To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
  • The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
  • The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.

The following apply to both First Time Buyers and Repeat Buyers:

  • The tax credit applies only to homes priced at $800,000 or less.
  • The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
  • For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
  • For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

For more information about this please contact your Real estate professional – OR if you are looking for a Realtor in Northwest Arkansas – Contact me, Nicky Dou! 479.236.3457

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