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November 6, 2009
A recent bill has been signed into Law providing tax incentives to prospective homebuyers. This bill extends
the First-Time Home Buyer Tax Credit of up to $8,000.00 to first-time home buyers untill April 30, 2010.
Additionally, the bill expands the credit to include a $6,500.00 credit for current home owers purchasing
a new or exsisting home so long as the home they are leaving has been used as their principal residence for 5 years or more. We went to www.irs.gov to pull the bill for you. The following is a copy of the bill. New Legislation New legislation, the Worker, Homeowership and Buisness Assistance Act of 2009, which has been signed into Law on Nov. 6, 2009, extends and expands the first-time home buyer credit allowed by previous acts. The new Law:
Under the new Law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal resisdence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifing purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
For the first time, long-time howowners who buy a replacement principal resisdence may also claim a homebuyer credit of up to $6,500.00 (up to $3,250.00 for a married individual filling separately). They must have lived in the same principal resisdence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased. People with higher incomes can now qualify for the credit. The new law rasies the income limits for home purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000. and $145,000 or between $225,000 and $245,000 for joint filers. The exsisting MAGI phase-outs of $75,000 to $90,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6 2009. |
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