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$8000 Tax Credit For First Time Homebuyers -- Extended and Income Limits are Higher!
President Obama signed the federal tax credit into law. It is expected to contribute approximately $22 billion to the economy, Congress overwhelmingly passed a bipartisan measure this week extending the $8,000 home buyer tax credit to April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. The legislation is part of a larger bill that also extends unemployment benefits.
More people will be eligible to take advantage of the new law in that existing homeowners will be eligible for a reduced credit of up to $6,500. To qualify for the $6,500 credit, existing homeowners must have lived in their current residences for at least five years of eight years. The bill also increases the qualifying income limits from $75,000 – $125,000 for single tax filers and $150,000 to $225,000 for joint filers. The purchase price of the home is capped at $800,000 in both instances.
Under additional provisions included in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The legislation maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.
NAR economists estimate that approximately 2 million people will take advantage of the tax credit this year.
Sources: NAR and The Associated Press, Julie Hirschfeld Davis (11/06/2009)
More people will be eligible to take advantage of the new law in that existing homeowners will be eligible for a reduced credit of up to $6,500. To qualify for the $6,500 credit, existing homeowners must have lived in their current residences for at least five years of eight years. The bill also increases the qualifying income limits from $75,000 – $125,000 for single tax filers and $150,000 to $225,000 for joint filers. The purchase price of the home is capped at $800,000 in both instances.
Under additional provisions included in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The legislation maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.
NAR economists estimate that approximately 2 million people will take advantage of the tax credit this year.
Sources: NAR and The Associated Press, Julie Hirschfeld Davis (11/06/2009)
Tags: a, buyer, buying, credit, estate, first, home, homebuyer, real, tax
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