Under the American Recovery and Reinvestment Act of 2009, qualified first-time homebuyers may receive a tax credit up to $8,000.
Tax Credit for First-Time Homebuyers
President Obama’s bill extends this program into 2010.
• Eligible for homes with purchase agreements signed by April 30, 2010, and closed by June 30, 2010
• Available to first-time homebuyers who have not owned a home during the past three years
• Credit amount up to 10% of the home’s value, not to exceed $8,000
• Buyers qualified for full tax credit are single taxpayers with incomes up to $125,000 and joint filers with incomes up to $225,000 $6,500
Tax Credit For Current Home Owners
President Obama’s new bill also provides up to $6,500 tax credit to current home owners who purchase a new primary residence. ·
Eligible for homes with purchase agreements written by April 30, 2010, and that close between November 6, 2009 and June 30, 2010
• Qualified home buyers must have lived in their current home for 5 consecutive years of the last 8 years
• Maximum purchase price of the home is $800,000
• Single tax filers who earn up to $125,000 are eligible for the total credit amount. Partial credit can be granted for incomes up to $145,000.
• Joint filers who earn up to $225,000 are eligible for the total credit amount. Partial credit can be granted for incomes up to $245,000.
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