New Homebuyer Tax Credit for More Buyers
The tax credit was also expanded to include a new $6,500 credit.
President Obama today signed legislation to extend and expand the $8,000 first-time homebuyer tax credit that had been set to expire at the end of the month. These changes are included in the Worker, Homeownership and Business Assistance Act of 2009.
The extension for the first-time home buy states home purchase contracts must be entered into by April 30, 2010 and closed by June 30, 2010. For owners of existing homes who are purchasing a new principal residence — if they have lived in their current residence for at least five consecutive years of the past eight years.
Income eligibility limits were also increased to $125,000 for individuals and $225,000 for married couples. Previous limits were $75,000 and $150,000. The home purchased must cost less than $800,000 to qualify the homebuyer for the tax credit. Buyers are required to attach documentation of the home purchase to their tax return to prevent fraud.
