Congress has extended and expanded the homebuyer tax credit. The updates will become effective when President Obama signs the bill.
Here are the highlights for the December 1, 2009 to April 30, 2010 Rules:
- First Time Buyer Credit remains unchanged at $8,000.
- First Time Buyer still defined as somone who hasn’t had an interest in a principal residence in the past 3 years.
- New – Current homeowners can now take advantage of a $6,500 credit if the sell their home and buy a new one. These homeowners will have to have lived in the home they are selling for more than 5 consecutive years of the previous 8 years.
- Credit terminates on April 30, 2009. Buyers who have written, binding contracts to purchase in effect on April 30, 2010 will be given until July 1, 201o to close.
- Income limits increased to $125,ooo for single and $225,o0o for married couples.
- Purchase price of the home cannot exceed $800,000.
Please contact your REALTOR for more information, as well as your tax preparer to ensure your eligiblity.