Homebuyer Tax Credit Extended!!!
On Friday, November 6th, the first time homebuyer tax credit was officially extended through April 30, 2010. (A sales contract needs to be signed by April 30, 2010. Closing must take place before July 1, 2010.) This is good news for new buyers who aren't on track to meet the original deadline of November 30 and for repeat buyers who are considering a move. Included in this extension is a new provision for repeating homebuyers who have lived in their previous home for 5 consecutive years during the past 8 years.
Here are some basics to know about the new tax credit as noted by the Illinois Association of Realtors:
- First-time buyers who have not had interest in a principal residence for three years are still eligible, and the maximum amount remains the same – $8,000 (or $4,000 for married couples filing separately).
- Current homeowners, who have consecutively maintained the home they want to sell as their primary residence for five of the last eight years, are also eligible. However, the maximum amount for those homeowners is lower: $6,500 (or $3,250 for married couples filing separately).
- Qualifying buyers must sign a purchase agreement by April 30, 2010, and close before July 1.
- The tax credit may not be used to purchase a home for more than $800,000. Vacation homes are ineligible.
- The income limits to earn the maximum for both tax credits have been raised to $125,000 for single buyers and $225,000 for married couples.
- All buyers who want to get the credit must include documentation of the purchase on their tax returns.
- The credit is extended for through June 30, 2011, for members of the military serving outside the United States for at least 90 days.
For more information visit: http://www.federalhousingtaxcredit.com/home.html