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Published on January 9, 2010

Author: pcamuto

Source: slideshare.net

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First Time Homebuyer Tax Credit - Mercer County Real Estate - Difference between New Construction and Contractor - Ewing, Hamilton, Princeton, West Windsor, East Windsor, Plainsboro, Cranbury, Lawrence, Monroe, Hopewell, and South Brunswick
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Valuable information for buyers and sellers. The $8,000 federal tax credit for first-time homebuyers and the $6,500 credit for current homeowners may be claimed for the purchase of both new and existing homes. However, there are slight differences between a newly constructed home purchased from a homebuilder and one built by a contractor for a property owner. For new homes purchased from a builder, tax credit eligibility is determined by settlement date. To qualify, the transaction to purchase the property must close on or before April 30, 2010 (or June 30, 2010, as long as a binding contract is in place by April 30, 2010). Conversely, in instances where a property owner hires a contractor to construct a home on an existing lot, the home is considered "purchased" on the date the owner first occupies the house. The eligible occupancy dates are the same as those listed above. For more information about the homebuyer tax credit, click here. You can also attend a tax credit seminar in most Weichert sales offices on Saturday, Jan. 16, at 11:00 a.m. to learn more about the tax credit and the other benefits of purchasing a home in the current market.

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