Homebuyer Tax Credit Expanded and Extended
It's Official. Today President Obama signed legislation that extends and expands the former First Time Homebuyers credit. The credit is now simply called the Homebuyer Tax Credit.
The National Association of Realtors has provided a chart which lists changes from the original First Time Homebuyers Tax Credit.
Here is additional information on the Homebuyers Tax Credit provided by NAR:
- If you qualified for the original first time homebuyer credit, you do not have to close by December 1, 2009. Since the new legislation was signed today, that date no longer exists.
- If you are an existing homeowner, your new house does not have to cost more than your old house.
- If you are a first-time homebuyer but did not qualify for the credit due to income limits, you may be eligible for the credit or a portion of it if you're within the phase out range.
- The $800,000 is the absolute ceiling for a home purchase. No proration of credit is allowed if your new home exceeds that amount.
- If you lived in your home for at least five consecutive years out of the last eight years (maybe you rented wihin that eight year period) you are eligible.
- If you are currently in escrow and have lived in your present home for five consecutive years, you should be eligible for the $6,500 credit.
The tax credit does not need to be repaid provided the buyer occupies the home for three years or more.
Buyers should consult their tax specialist for homebuyer tax credit information specific to their situation.
Updated FAQs on both the $8,000 first time home buyers and the new $6,500 repeat buyers tax credits can be found here: http://bit.ly/26Izh1