An early Christmas present for many home buyers came in the form of the extension of the federal tax credit for home buyers, and was signed into law
by President Obama Friday, Nov. 6. The
tax credit, which was set to expire Nov. 30, has been extended through April
30, 2010 with a 60-day extension if a binding contract is in place prior to
deadline. It also was expanded to
include existing homeowners who have lived in their primary residences for five
consecutive years out of the last eight years.
For all kinds of FAQs (aka, "Everything You Wanted to Know About the Tax Credit....But Were Afraid to Ask), see the official website here.
First-time home buyers still may be eligible for a tax
credit of up to $8,000, while existing homeowners may receive a credit of up to
$6,500. The bill also increases the
qualifying income limits from $75,000 for single tax filers and $150,000 for
joint filers, to $125,000 and $225,000, respectively. The purchase price of the
home is capped at $800,000 in both instances.
Under additional provisions in the bill, taxpayers can claim the credit on
purchases completed in 2010 on their 2009 income tax returns. The bill
maintains the provision that home buyers do not have to repay the credit
provided the home remains their primary residence for 36 months after purchase,
and waives this requirement for active duty military personnel who move due to
a military order.
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