After a two week delay, President Obama signed a bill which will extend the $8000 tax credit for qualifying first-time home buyers through June 2010. First time home buyers will receive the $8,000 Federal tax credit if they:
1. Sign a contract by April 30, 2010
2. Close on the home by June 30, 2010.
The new bill will also provide a $6,500 credit for repeat buyers who purchase a new primary residence, and have lived in their current home for at least five of the previous 8 years.
The bill has a few provisions including:
1. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.
2. Joint tax filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
The credit will not be giving for investment properties or vacation homes. You will receive this credit when you file your taxes. If you have been considering selling or buying a home, now is a good time to take advantage of this credit. It is best to contact your tax advisor for more specific information to see if you qualify.