Santa Cruz Property Buyers Tax Credit Ending

Attention home buyers: You have less than a month left before the home buyer tax credit expires.

First-time home buyers may qualify for up to $8,000, while those who are trading up could get as much as $6,500. But either way, home buyers have to sign the sales agreement by the end of April and close before July 1 to get the refund. Don't wait, thinking the credit will be extended for a third time as it is very unlikely.

Who's eligible for the home buyer tax credit?

Not every buyer qualifies for the credit. Here are some guidelines:

* Home buyers who have not owned a home for the past three years may earn up to $8,000 or 10% of the purchase price, whichever is lower.
* Buyers who have owned a home for five consecutive years of the past eight qualify for up to $6,500 in credits.
* There are income limits of $125,000 for single taxpayers and $225,000 for couples.
* Anyone paying more than $800,000 for the home cannot claim the credit.

There's a prohibition on claiming the first-time home buyer credit if either member of a couple owned a home within the three-year period. They can claim the existing home buyer credit.

Home buyers who are under 18 or are listed as dependents on the tax returns of others don't qualify. The home must be kept at least three years.

The credit may be claimed on 2009 taxes, even if the return was already filed. Just submit an amended return.

Note that buyers get the full amount of the credit they're due even if that exceeds the amount of taxes they owe. If you're a first-time buyer and your total tax bill for the year is $6,000, you get all that back plus another $2,000.

If you are looking for Santa Cruz homes for sale or advice on purchasing a home I can help.