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Homebuyer Tax Credit Extension and Expansion
Posted By PAR Staff Report On November 6, 2009 @ 1:31 pm In Government AffairsPresident Barack Obama signed The Worker, Homeownership and Business Assistance Act of 2009 into law today.The law extends the present $8,000 tax credit for first-time homebuyers through April 30, 2010. Current homeowners are eligible for a $6,500 tax credit through April 30, provided they have lived in the home they are selling, or have sold, as the principal residence for five consecutive years during the past eight years.If potential homebuyers have a binding contract on or before April 30, they will have 60 days to close the transaction. Income limits for eligible homebuyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000.Qualifying service members have until April 30, 2011 to take advantage of the first-time homebuyer credit. If ordered to deploy and forced to sell the home within three years, the service member will not have to repay the credit.To help guard against fraud, buyers are required to attach documentation of purchase to their tax return. The person claiming the credit must be at least 18 years old.More information on the tax credit and what it means to Buyers and Sellers: Frequently Asked Questions About the New Bill
In Depth: 2009 First-Time Homebuyer Tax Credit
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