Homebuyers Tax Credit - Major Modifications Old vs. New

Homebuyers Tax Credit - Major Modifications Old vs. New (edit/delete)

Yesterday, the House voted to approve the extension and expansion of the homebuyer tax credit. The legislation was part of a piece of legislation that extended unemployment benefits as well.

The legislation extends the availability of the tax credit to purchases on or before April 30, 2010. Home Buyers must be in contract by April 30, 2010 and will have an additional 60 days to close and complete the transaction. The New Homebuyer Tax Credit will remain $8,000 for first-time buyers, but previous homeowners or current homeowners who purchase between December 1, 2009 and May 1, 2010 will be eligible for a credit of $6,500. These previous homeowners and repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years and their homes must have sold or currently be on the market for sale.

The income limits to qualify for the tax credit have been expanded to $125,000 on a single return and $225,000 on a joint return.

You might find this chart that NAR just put out highlighting the differences and major modifications of the OLD verses the NEW Tax Credit helpful. The chart highlights what's new and what's different about the two programs in a very clear manner.

Here's the link to that chart: Homebuyer Tax Credit Changes.

Most of the real estate community believes that the tax credit has been working to revitalize the housing market. Our hope is that once again this will serve to contribute in a significant way to our economic recovery. Let's hope that we're right!