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Extension and Expansion of the First Time Homebuyer Tax Credit

By
Managing Real Estate Broker with Lehman & Scheffler Real Estate Services

Congress has extended and expanded the homebuyer tax credit to include home buyers who have lived in their existing principal residence consecutively for 5 of the last 8 years.

Highlights

First Time Home Buyers can still receive an $8,000 ($4000 married filing seperate) tax credit for homes purchased between December 1, 2009  - April 30, 2010

Current Homeowners can receive a $6500 ($3250 married filing seperate) tax credit for new home purchases provided that they have used their home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.

Credits terminate for purchases after April 30, 2010.  Unless there is a written binding contract to purchase a home is in effect prior to April 30, 2010.  The purchases would have until July 1, 2010 to close.

Income limits: $125,000 single, $225,000 married

Limitation on cost of Home is set at $800,000

All purchasers ust attach documentation to purchace on their tax return.

 

For a side by side chart comparison between the 2 tax credits please see below link courtesy of the National Association of Realtors http://www.realtor.org/fedistrk.nsf/files/government_affairs_tax_credit_ext_chart_110409.pdf/$FILE/government_affairs_tax_credit_ext_chart_110409.pdf

 

 

 

 

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