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The homebuyer tax credits
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The $8,000 first-time homebuyer tax credit is extended
- Now, qualified first-time home buyers would receive their $8,000 tax credit if they sign a purchase contract by April 30, 2010 and close by June 30, 2010
- The home purchased must be their primary residence
- Buyer cannot have owned a home during the past three years
- Tax credit is up to 10 percent of the home’s value (not to exceed $8,000)
- Annual income caps to qualify for the tax credit will increase ($125,000 for single filers / $225,000 for joint filers). Partial tax credit can be granted for incomes up to $145,000 for single filers / $245,000 for joint filers
New $6,500 tax credit for current homeowners purchasing a primary residence
- Eligible home buyers must have lived in their current home for five consecutive years of the past eight years
- The new home’s cost need not exceed the current home
- Eligible for homes with purchase agreements written by April 30, 2010 and that close between Nov. 6, 2009 and June 30, 2010
- Annual income caps to qualify for the tax credit will increase ($125,000 for single filers / $225,000 for joint filers). Partial tax credit can be granted for incomes up to $145,000 for single filers / $245,000 for joint filers
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