Homebuyer tax credit extended and expanded
The Unemployment Insurance bill President Obama signed on November 13 included included a change critical for Realtors®: An extension of the $8,000 homebuyer tax credit. Income limits have been raised, and now some existing homeowners can also claim a credit if they buy a new home.
The basics:
- To claim any credit, buyers must have a contract by April 30, 2010 and close by July 1, 2010.
- The income limit has been raised to $225,000 for couples.
- First-time buyers can claim an $8,000 credit, as before.
- Buyers who already own the home they are selling (or have sold), and have lived there for five of the past eight years can claim up to a $6,500 tax credit (on homes worth $800,000 or less).
- Both credits apply only to primary residences.
Click here to view or download a chart (PDF) explaining the difference between this credit and the one set to expire on November 30.
