On November 6th, President Barack Obama signed the Worker, Homeownership and Business Assistance Act of 2009 into law, extending and expanding the homebuyer tax credit that was previously scheduled to expire at the end of November. No longer just a tax credit for first-time homebuyers, the new legislation also provides a tax credit to existing homeowners as well. Here are some of the details you should know.
• The deadline for first-time homebuyers to take advantage of the up to $8,000 tax credit is now extended to cover home purchases that close by April 30th, 2010.
• If a home is under contract on April 30th, the tax credit deadline for the closing is extended further, to June 30th, 2010.
• Existing homeowners can now also qualify for a tax credit of up to $6,500, provided that the buyer has owned their principal residence for at least five consecutive years during the last eight years prior to the new home purchase.
• The new law increases the income limitation for individual taxpayers who want to claim the credit, from $75,000 to $125,000. The income limit for joint filers increases from $150,000 to $225,000.
• The new legislation allows homebuyers to cash in on their tax credit in advance. Homebuyers can claim the credit for a 2009 home purchase on their 2008 tax return, and the credit for a 2010 home purchase can be claimed on a 2009 return.
• Military service members on extended duty outside the United States have one extra year to close on their new home and still take advantage of the tax credit, with a closing deadline of April 30th, 2011.
• Lennar has designated a select number of homes available for immediate move-in that can qualify for these newly extended and expanded tax credits. For details, click here to visit LENNAR.COM.