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Tax Credit Extended to 2010 PLUS a NEW credit for repeat buyers.

Wed, Nov 18, 2009

Buying Advice

It’s official.  President Obama has signed a bill that extends the tax credit for first-time homebuyers into the first half of 2010.  The program HAD been scheduled to expire on Nov. 30th, 2009.

In addition to extending the tax credit through June 30th, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

So Who Gets What?

The program that has existed for first-time homebuyers remains intact with one exception – that more people are now eligible based on an increase in the amount of income someone may now earn.

Additionally the program now gives those who already own a residence some additional reasons to move to a new home.  This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Deadlines:

In order to qualify for the credit, all contracts need to be in effect no later than April 30th, 2010 and close no later than June 30th, 2010.

Higher Income Caps in Effect:

The amount of income someone can earn and quality for the full amount of the credit has been increased.

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.

Joint 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.

Maximum Purchase Price:

Qualifying buyers pay purchase a property with a maximum sales price of $800,000

First time Homebuyer Tax Credit – Frequently Asked Questions – click here.

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Becky Becky Wyatt  
REALTOR®
HomeSmart Real Estate
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