Home-buyer Tax Credit to be Extended and Expanded

Home Buyer Tax Credit Expanded and Extended

President Obama signed an extension and expansion of the first-time home buyers tax credit on Friday November 6, 2009. Following are the highlights of the new legislation. For detailed information you can go here.

• The $8,000 Tax Credit for first time home buyers was scheduled to lapse on Dec 1, 2009 but will now be in effect through June 30, 2010.

• FOR THE FIRST TIME, homeowners who have owned and occupied a residence for at least five years out of the past eight can claim $6,500 tax credit if they close on a purchase by the end of June.

• Home Buyers must sign a contract before April 30th, 2010 and close by June 30, 2010.

• The income limits were also raised: Single buyers can now earn up to $125,000 and still get the full credit while a married couple can earn up to $225,000.

• To be eligible as a first time home buyer you must not of had an interest in a principal residence for 3 years prior to purchase.

• The maximum allowed home purchase price is $800,000.