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$8,000 Tax Credit Extended
Nov 17th, 2009Now that both the Senate and House have passed the extension (and revisions) to the Hombuyer Credit (98-0 and 403-12, respectively, and President Obama has signed, it's time to review the details:
- The $8000 first time homebuyer credit will extend to contracts SIGNED by April 30th and must close by June 30th, 2010.
- The bill also creates a $6,500 credit for those who buy a home after living in their current house at least five years.
- The credit defines a first-time homebuyer as someone who has not owned a residence within the past three years.
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The credit would be available only for the purchase of principal residences priced at $800,000 or less. The bill would raise the adjusted gross income cap to $125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.
