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Obama Signs Homebuyer Tax Credit Extension
- Signed November 6th
- Extends first-time homebuyer tax credit until midnight April 30, 2010
- First-time credit extended!
- Current homeowners tax credite added!
Who is eligible?
First-time homebuyers who have not owned a principle residence during
the time frame 3 years prior to the purchase. Up to $8,000 tax credit.
NEW: Existing homeowners who have been
residing in their residence for 5 consecutive years out of the last 8 years
and are purchasing for a primary residence. They can receive up to a $6,500 tax credit.
All U.S. citizens who file a tax return are eligible.
Income Limits
Homebuyers who file as head of household can claim the
full credit of $8,000 for first-timers and $6,500 for repeat buyers
if their modified adjusted gross income (MAGI) is less than $125,000.
Married couples filing jointly combined income is less the $225,000.
Single of head of household taxpayers earning between
$125,000 and $145,000 and married couples earning between $225,000
and $245,000 are elegible to receive a partial credit.
NO TAX CREDIT for singles whose MAGI is greater than
$145,000 and married couples greater than $245,000.
Effective Dates
Homes purchased after November 6, 2009 and before May 1, 2010.
The sales contract must be signed by April 30th, and must close prior to September 30, 2010.
Types of Homes that Qualify
All homes with a purchase price of less than $800,000. Newly
constructed or re-sale, and single family detached, townhomes or condominiums.
Home purchases must be used as your primary residence. Vacation homes
and rental properties do not quality.
Payback Provisions
The tax credit is a true credit. It does not have
to be repaid unless the homeowner sells or stops using the home as their
primary residence within 3 years of the purchase.
The Federal Housing Tax Credit
website is being updated continuously. Please check it for more detailed information.
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