Important Homebuyers Tax Credit Information

On November 6th, 2009 President Obama passed into legislation an extension and major revisions to the former First-Time Homebuyers Tax Credit Program. The new Homebuyers Tax Credit Program has been expanded to a wider group of homebuyers.

Existing First-Time Homebuyers Tax Credit Extension

• The tax credit is equal to 10% of the home's purchase price up to a maximum of $8,000.
• Under the new law, an eligible taxpayer must buy, or enter into a new binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010.
  First-Time Homebuyers are defined as not having any ownership interest in a principal residence for three years prior to purchase.

• Expansion to Existing Homeowners
• The tax credit is equal to 10% of the home's purchase price up to a maximum of $6,500.
• Under the new law, an eligible taxpayer must buy, or enter into a new binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010.
• Existing homeowners must have owned and occupied their primary residence for five consecutive years out of the last eight.

Additional Changes

• Income limits to qualify for the full amount of the tax credit have been raised to $125,000 (single taxpayer) and $225,000 (joint taxpayers) - formerly $75,000 (single taxpayer) and $125,000 (joint taxpayers).
• Tax credit applies to homes priced at $800,000 or less.

For additional information please contact Adam Redman.

For More Information; go to: Federal Housing Credit Information