NEW TAX CREDIT
President Barack Obama signed into law the homebuyer tax credit extension that was approved by the U.S. Senate on Wednesday and the U.S. House on Thursday. The legislation went into effect upon the President’s signature. The new $6,500 tax credit for those who have owned a home in the last three years is in effect for all purchases closed after today. Key elements of the legislation include:
When do the Home buyer Tax Credits End?
The home buyer tax credits will both expire on April 30, 2010. However, those who are under contract before April 30 will be able to qualify as long as the sale is completed within 60 days. Though Congress has been quick to extend this program in the past, this will be the third generation tax credit and congressional support is waning. Very few congressmen expect that a fourth generation home buyer tax credit will be made available, so take advantage while you can.
• First time homebuyers who have an accepted contract by April 30, 2010 and close on the transaction by July 1, 2010 are eligible.
• First time homebuyer credit remains $8,000 for a married couple filing jointly.
• Current homebuyer tax credit of $6,500 for a married couple filing jointly is available to existing homeowners who have lived in their home 5 of the last 8 years.
• Current homebuyers must have their new home under contract by April 30, 2010 and close on the transaction by July 1, 2010.
• Income limitations for the tax credits have been raised to $225,000 for married couples filing jointly.