Anyone who has not owned a home in the last three years would still get up to $8,000 for buyers who sign a contract by April 30, 2010 and close by June 30th.
"The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days." ...read more
$6500 tax credit offered to homebuyers who have lived in their current residence at least five years and who want to “trade up” (buy a new primary residence).
Individuals earning up to $125,000 a year and couples earning as much as $225,000 a year would qualify (up from $75,000 for individuals and $150,000 for couples).
Tax credit not applicable for those buying homes worth more than $800,000.
Those who sell their new home or stop using it as their main residence within three years would have to repay the credit.
The homebuyer tax credit is one of 10 key provisions of the American Recovery and Reinvestment Act signed by President Obama into law on Feb. 17, 2009.
The bill provides for a $8,000 tax credit that would be available to
first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009 (Now extended to April 30, 2010!). The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
How does the homebuyer tax credit work?
The guidelines to qualify for the First-Time Homebuyer Tax Credit are listed in IRS From 5405.
The $8,000 tax credit is for first-time home buyers or those who have not owned a home in the past 3 years. A $6,500 tax credit is also available for homeowners who have owned a home in the past 5 years.
The tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009. This has now been extended to April 30, 2010 and an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. The extended program now qualifies single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000
