GREAT NEWS: Extended $8,000 First-Time Homebuyer and New $6,500 Repeat Homebuyer Federal Tax Credits
The federal
government has just expanded (and extended) the Worker, Homeownership, and Business
Assistance Act of 2009, as follows:
- Qualified first-time homebuyers purchasing a
principal residence may be eligible for up to $8,000 federal tax credit. “First time” means buyer has not owned a
principal residence during the three-year period prior to the purchase. The tax credit is equal to 10 percent of
the home’s purchase price up to a maximum of $8,000. For sales occuring after November 6,
2009, the income limit for single taxpayers is $125,000 while the limit
for married taxpayers filing a joint return is $225,000. The buyer can buy any kind of home whether
new or resale provided the purchase price is less than or equal to $800,000.
- Qualified current homeowners looking to purchase
a home, may be eligible for up to $6,500 federal tax credit. They are also called repeat
homebuyers. They can purchase any kind
of home whether single-family detached, townhouse, condominium,
manufactured home (mobile home), and houseboat as long as it will be used
as a principal residence and the purchase price is less than or equal to
$800,000. The home buyer should
have owned and resided in a home for at least five consecutive years of
the eight years prior to the purchase date of the next home. The federal tax credit is equal to 10
percent of the home’s purchase price up to a maximum of $6,500 credit. The income limit for single taxpayers is
$125,000, whereas, the limit for married taxpayers filing a joint return
is $225,000.
You must sign a
binding contract by April 30, 2010 and close by June 30, 2010.
It is recommended that you consult a qualified tax advisor or
legal professional about your specific situation.
Isn't this great? Hurry if you are planning to buy a home. Time is running. It may not be extended again.
