by Admin
9. November 2009 16:15
New legislation under The Worker, Homeownership, and Business Act of 2009 was recently signed to extend the $8,000 tax credit for first-time home buyers and to provide a new tax credit of up to $6,500 for qualified repeat buyers. For both programs, the credits apply to sales taking place by April 30, 2009 (binding sales contract by April 30, 2009 and home closing by June 30, 2009 will qualify).
The first-time home buyer tax credit legislation increased the maximum income limits from the previous program. For sales occurring after November 6, 2009, the maximum income limit is $125,000 for single taxpayers and $225,000 for married couples filing joint returns. This is up from $75,000 and $150,000 for single taxpayers and married taxpayers, respectively.
The definition of a repeat home buyer is a home owner who has owned and resided in a home for at least 5 consecutive years of the eight years leading up to the purchase date. The tax credit is 10% of the purchase price of the home, up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for this tax credit.
For more information and FAQ's on these tax credits, please click here.
http://www.federalhousingtaxcredit.com/