Last year at this time we were writing to inform you about a Federal Government program allowing a tax credit for first-time homebuyers or long term residents purchasing a new home. This year we are writing to remind you to make sure, if you are eligible, to claim the credit! Under this program homebuyers must have purchased or entered into a contract to buy a principal place of residence, in the United States, on or before April 30, 2010. If you entered into a contract on or before April 30, 2010, then you must have closed on or before September 30, 2010. The maximum credit for first-time homebuyers is $8,000.00 and the maximum credit for a long-time resident homebuyer is $6,500.00.

A few requirements to note is a Purchaser must be at least 18 years of age on the purchase date and a dependent is not eligible for the credit. Further, to be considered a first-time homebuyer a purchaser and their spouse, if married, must not have jointly or separately owned another principal residence during the three years prior to the date of purchase. A long-term resident homebuyer and their spouse, if married, must live in the same principal residence for a 5 consecutive year period during the 8 year period that ended on the date the new home is purchased.

To find out if you qualify or for more information on what may be needed to claim the credit, please contact Lavelle Law, Ltd. at 847-705-7555.