Last Friday, President Obama signed the Tax Credit Expansion into law. This extends the first-time buyer tax credit and creates a new tax credit for current homeowners who buy a new house.
This is a really big deal - Just ask any first-time buyer who has been trying to make the old deadline!
The tax credit extension coupled with low interest rates, creates a prime opportunity to buy your first home, move up to fit your growing family or downsize while the government helps you!
Below is a summary of the new modifications in the extension and expansion of the tax credit:
- The $8,000 tax credit will be extended and available for first-time buyers through April 30th, 2010.
- Prospective purchasers with written contracts in place as of April 30th, 2010 will have until July 1st, 2010 to close the transaction.
- A NEW $6,500 tax credit will be available for current homeowners. To qualify for this provision, you must have used the home being sold as a principal residence consecutively for 5 of the previous 8 years.
- Income limits are expanded to $125,000 on a single return and $225,000 on a joint return.
- The limitation on the cost of the purchased home is $800,000.
Here are some really great websites that provide more information and answer situational questions:
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