First Time Home Buyer Tax Credit Extension

BOTH the House and the Senate have passed the bill which includes the $8,000 First Time Home Buyer Tax Credit Extension.

We now await the President's signature.

The $8,000 homebuyer tax credit for first-time buyers, due to expire in 25 days, will be extended through April 30 of next year.

The new legislation increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.

For the first time, the new legislation makes buyers who already own a home eligible for a credit. A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less.

The legislation takes effect December 1 and is not retroactive. Both credits are available only for primary residences, not second homes or investment properties.

I have more information, if you would like it, please contact me!

Debby Lisella
Debby.Lisella@PrudentialCarruthers.com