The Homebuyer Tax Credit Has Been Extended and Expanded. Now first-time homebuyers can qualify for a tax credit for homes purchased up to $800,000 if they have a binding contract on a home in place by April 30, 2010---and they close by June 30. Buyers who have not owned a home during the last three years get a tax credit up to 10% of the home price, up to $8,000.
PLUS... The tax credit is now available to existing homeowners who have lived in the same principal residence for five consecutive years during the eight-year period that ends when the new home is purchased. The same deadlines apply, but the tax credit for these "move-up" buyers is capped at $6,500.
Finally, income limits to qualify are now higher. The tax credit phases out for individuals with modified adjusted gross income between $125,000 and $145,000 and between $225,000 and $245,000 for people filing jointly.
A tax credit is a direct reduction of your income tax. After calculating what you owe, you deduct the tax credit from that amount. As with all tax matters, be sure to consult a qualified, professional tax advisor.
For more information about the federal tax credit extension and the new $6500 tax credit for existing homeowners, please visit or contact one of our Sales Associates today.
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