Homebuyer Tax Credit
HOMEBUYER TAX CREDIT
Congress recently extended and expanded the popular Homebuyer Tax Credit that was due to expire on November 30th 2009. The provisions of the new law went into effect upon President Obama’s signing the bill and extend into 2010.
All indications are that this will be the final extension of the tax credit which tens of thousands of first time homebuyers have taken advantage of during it’s initial phase in 2008, and into 2009 during the first extension and expansion of the bill.
The new bill makes the tax credit available to current home owners for the first time. It doesn’t matter if you are upgrading to a bigger home or downsizing to something smaller, you can now get a $6500 tax credit if you meet certain criteria. Some of the limitations are as follows…
*Home purchased cannot exceed $800,000.
*Income limit for married couples is $250,000 and $125,000 for a single person.
*You must have lived in your current home for 5 of the previous 8 years.
First time homebuyers can claim an $8000 credit if they meet the income and purchase price limits as set forth above, and have not had an ownership interest in a principal residence for 3 years prior to purchase. Anyone wishing to take advantage of this program must enter into a valid contract no later than April 30th 2010, and close on the transaction by July 1st 2010.
You should speak to a tax professional in order to be sure you fit all of the criteria to receive the credit, but this is a pretty straight forward program. Act fast, it’ll be gone before you know it!
