Tax Credit Extension & Expansion is Approved!
President Obama has approved a bill for the Housing Tax Credit Expansion and Extension. Here’s what it means:
The $8,000 First-Time Homebuyer Tax Credit is Extended!
- Now, qualified first-time home buyers would receive their $8000 tax credit if they sign a purchase contract by April 30, 2010 and close by June 30, 2010.
- The home purchased must be their primary residence
- Buyer cannot have owned a home during the past three years
- Tax credit is up to 10% of the home value (not to exceed $8,000)
- Annual income caps to qualify for the tax credit have increased ($125K for single filers / $225K for joint filers). Partial tax credit can be granted for incomes up to $145K for single filers / $245K for joint filers.
- PLUS New $6,500 Tax Credit for Current Home Owners Purchasing a Primary Residence
- Eligible home buyers must have lived in their current home for 5 consecutive years of the past 8 years.
- The new home does not have to cost more than the old home.
- Eligible for homes with purchase agreements written by April 30, 2010 and that close between November 6, 2009 and June 30, 2010
- Annual income caps to qualify for the full tax credit ($125K for single filers / $225K for joint filers). Partial tax credit can be granted for incomes up to $145K for single filers / $245K for joint filers.