Home Buyers Tax Credit

Tax Credits Provide Unbeatable Incentives for New and Repeat Home Buyers

New Home Buyers

HR 358, or The Worker, Homeownership, and Business Assistance Act of 2009, has been signed into law, extending the first-time home buyers tax credit to run until April 30, 2010.
 
The tax credit of up to $8,000 for qualifying first-time buyers purchasing a primary home applies to homes purchased from January 1, 2009 to April 30, 2010. If a binding sales contract has already been signed by April 30, 2010, however, then purchases completed by June 30, 2010 will also qualify.

The Act also establishes new income limits for homes purchased after November 6, 2009 ? $125,000 for single taxpayers and, for married couples filing joint returns, $225,000.

This is an increase on income limits for sales that occurred from January 1, 2009 to November 6, 2009. Income limits for sales during this period are $150,000 for married taxpayers filing joint returns and $75,000 for single taxpayers.

Repeat Home Buyers
 
HR 358 has also been expanded to include a tax credit for home buyers who have lived in their current residence for at least five years and are now planning to purchase a new home. These move-up or repeat home buyers can qualify for a tax credit of up to $6,500 when they purchase a primary home in the period after November 6, 2009 and until April 30, 2010. Homes under contract by April 30, 2010 and purchased by June 30, 2010 will also qualify.