President Barack Obama signed homebuyer tax credit extension!

RISMEDIA, November 9, 2009—President Barack Obama has approved the first-time homebuyer tax credit extension which will extend the tax credit until April 30, 2010.

The extension is part of a $24 billion economic stimulus bill that will extend the $8,000 tax credit for homebuyers who are purchasing their first home from the current November 30 deadline and expands the program to offer a credit of $6,500 to homeowners who have lived in their current home for at least five years and are seeking to relocateRead more: http://rismedia.com/2009-11-08/obama-signs-homebuyer-tax-credit-extension/#ixzz0WUokStTl

Who is Eligible

First-time homebuyers, who are defined as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit or 10% of the purchase price of the home

Existing homeowners, who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence, will be eligible for up to a $6,500 tax credit.

You must file taxes to be eligible to participate in this program

Income Limits

• Homebuyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.


• For married couples filing a joint return, the combined income limit is $225,000.


• Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.

Effective Dates

• The eligibility period for the tax credit is for homes purchased (closed) after Nov. 6, 2009, and before May 1, 2010.


• Also, home purchases subject to a binding sales contract (Purchase Agreement) signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.

Types of Homes that Qualify

• All homes with a purchase price of less than $800,000 will qualify This includes new construction or resale single family homes, townhomes, or condominiums.


• The home must be used as the purchaser's principal residence. Note that purchases of vacation homes and rental properties do NOT qualify

Tax Credit is Refundable

• You may take the credit on your 2009 or 2010 tax returns.


• If the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference


• Be sure to check with your tax advisor!!

FAQ's from National Asso of Realtors
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