BREAKING NEWS: Homebuyer tax credit extended and expanded

The $8,000 tax credit for first-time homebuyers has been extended through April 30, 2010. Additionally, a $6,500 tax credit is now available to qualified current homeowners!

The $8,000 first-time homebuyer tax credit is extended

  1. Now, qualified first-time homebuyers would receive a tax credit of up to $8,000 if they sign a purchase contract by April 30, 2010, and close by June 30, 2010
  2. The home purchased must be their primary residence
  3. Buyer cannot have owned a home during the past three years
  4. Tax credit is up to 10 percent of the home’s value (not to exceed $8,000)
  5. Annual income caps to qualify for the tax credit will increase ($125,000 for single filers / $225,000 for joint filers)
  6. Buyers don’t need to repay the tax credit if they occupy the home for three years or more
  7. Members of the military who are serving overseas on “official extended duty” for a least 90 days during 2009 and the first four months of 2010 have an extra year to take advantage of the credit

New $6,500 tax credit for current or previous homeowners purchasing a primary residence

  1. Now, qualified repeat homebuyers would receive a tax credit of up to $6,500 if they sign a purchase contract by April 30, 2010, and close between November 7, 2009, and June 30, 2010
  2. Eligible homebuyers must have lived in their current home for five consecutive years of the past eight years
  3. The new home’s cost can be less than that of the current home
  4. Tax credit is up to 10 percent of the home’s value (not to exceed $6,500). Purchase of homes priced above $800,000 are not eligible for the tax credit
  5. Annual income caps to qualify for the tax credit will increase ($125,000 for single filers / $225,000 for joint filers)
  6. Buyers don’t need to repay the tax credit if they occupy the home for three years or more
  7. Members of the military who are serving overseas on “official extended duty” for a least 90 days during 2009 and the first four months of 2010 have an extra year to take advantage of the credit

For further information about eligibility requirements and limitations, visit www.irs.gov.

PLEASE NOTE: This information is subject to change without notice. Consult a tax advisor regarding your individual situation. This information is not intended to provide legal advice, tax advice, accounting services, or investment advice, nor should it be relied on for legal advice. Please seek the advice of your own legal counsel.