Homebuyer Tax Credit Extended and Expanded till April 2010
January 20, 2010
The legislation extends the tax credit of up to $8,000 for qualifying first-time homebuyers that was set to expire on Nov. 30, 2009. First-time homebuyers, defined as those who have had no ownership interest in a principal residence over the last three years, can qualify for the tax credit by having a home purchase under contract by April 30, 2010.
Existing homeowners qualify for the tax credit of up to $6,500 if they have lived in their current residence for at least five years or more during the previous eight years and have purchased a home and entered into a binding contract by the end of April of 2010.
Both credits are available for purchases of “principal residences” with prices up to $800,000. The credit starts to phase out for individuals with income above $125,000 and for joint filers who earn more than $225,000. Previously, the credit for first-time homebuyers phased out for individuals with income above $75,000 and for joint filers with income above $150,000.
For more information go to the Internal Revenue Service’s Web site at www.irs.gov and click the Tax benefits of American Recovery and Reinvestment Act of 2009 link.
Source: Internal Revenue Service