
Congress extends the popular $8,000 tax credit for homebuyers.
New legislation passed through the United States Congress has extended and expanded the first-time homebuyer tax credit. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, the law also allows home sales occurring by June 30, 2010 to qualify, provided they are due to a binding sales contract on or before April 30, 2010.
The extended Act covers sales occurring after November 6, 2009, and establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns. The new law:
• Extends the deadline for purchasing and closing on a home
• Authorizes the credit for long-time homeowners buying a replacement primary
• Raises the income limitations for homeowners claiming the credit
The Worker, Homeownership, and Business Assistance Act of 2009 has also established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a primary residence after November 6, 2009 and on or before April 30, 2010.
Below are basic questions and answers regarding the extended $8,000 Homebuyer Tax Credit and the $6,500 move-up/repeat buyer credit. For more in-depth queries, we encourage you to consult a qualified tax advisor or professional. (More …)