Obama Signs First-time Homebuyer Tax Credit Extension
Homebuyer Tax Credit Extension was signed into law on Friday, November 6th.
The legislation extends it to homes that are under contract by April 30, 2010, and creates a new $6,500 tax credit for owners of existing homes who buy a new principal residence.
1) HR 3548 now allows first-time buyers to claim 10% of the purchase price of their home, up to $8,000 for single or married taxpayers filing jointly, if they close on the purchase by midnight June 30, 2010.
2) New provisions accompany the extension. The credit is allowed for those with incomes up to $125,000 or $225,000 for taxpayers filing jointly. The credit reduces for those with incomes between $125,000 and $145,000 – or $225,000 and $245,000 if filing jointly. Anyone with an income higher than $145,000, $245,000 if filing jointly, can not receive credit.
3) Taxpayers who have lived in their home for five consecutive years during the eight years before closing on a new home may qualify for a reduced credit – $6,500 joint filers and $3,250 for those who file jointly
Additional FAQ about the Repeat Homebuyer Tax Credit!
