Tax Credit Extension
December 15, 2009
The first-time homebuyer tax credit has been extended until April 30, 2010.
The $8,000 tax credit for homebuyers who are purchasing their first home has been extended from November 30, 2009 to April 30, 2010 if the escrow closes no later than June 30, 2010. The program also offers a credit of $6,500 to homeowners who have lived in their current home for at least five consecutive years and who relocate.
Eligiblity guidlines:
-First-time homebuyers- buyers who have not owned a principal residence during the 3-year period prior to the purchase, may be eligible for up to an $8,000 tax credit.
-Current homeowners who have lived in their principal residence for 5 consecutive years out of the last 8 and buy a home to be lived in as their principal residence, may be eligible for up to a $6,500 tax credit.
-Participants must be citizens of the United States and file income tax.
Income Guidlines
Homebuyers filing as single or head-of-household taxpayers can claim the full credit ($8,000 or $6,500) if they have modified adjusted gross income of less than $125,000.
-Married couples filing a joint return, must have a combined income limit less than $225,000.
-In some instances partial credit may be awarded depending on filing status and income limits.
-The home must be purchased after Nov. 6, 2009, and before May 1, 2010. If the sales contract is signed by April 30 2010, the transaction will meet the qualifications if it closes by June 30, 2010. Homes purchased must be used as principal residence and less than $800,000 purchase price. The credit does not have to be repaid if the home is kept as the buyers principal residence for 3 years.
Because it matters…
Ellen
