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Homebuyer Tax Credit Extended and Expanded till April 2010

January 20, 2010

President Barack Obama signed a new law on Nov. 6, 2009 that extended the $8,000 tax credit for first-time homebuyers and added a new $6,500 credit for existing homeowners.

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

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Comments

One Response to “Homebuyer Tax Credit Extended and Expanded till April 2010”

  1. Clearwater King on January 23rd, 2010 1:13 pm

    Stay away from short sales if you want to close and get this tax credit. Our short sale lasted over 8 months and then we denied. What a waste of time and emotional energy.

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