Tax Credit Program
November 6, 2009: It is official! President Obama has approved and signed the extension and expansion of the homebuyer's tax credit as part of the economic stimulus bill.
|
“The rebound in the housing market was one of the big factors that contributed to the growth of the economy last quarter,” President Obama said at a national address in the White House Rose Garden Friday, November 6th. “We want to give even more families the chance to own their own home.” |
-
The housing tax break for first time buyers, which was initially set to expire at the end of November, is now available to buyers who sign a contract by April 30, 2010, and close by June 30, 2010.
-
In addition, other buyers who have lived in their current residence for at least five years of the last eight but want to relocate to a new primary residence can reccieve a credit of up to $6,500 - the incentive for these "move-up" buyers will begin on December 1st of this year.
-
Income limits increased and are the same for first-time buyer and the existing homeowner - $125,000 for single filers/$225,000 for joint.
-
The tax break is only available on primary residences priced at $800,000 or less.
-
Time frame: December 1, 2009 to April 30, 2010 - plus 60-day extension if binding contract is in place by April 30, 2010. Must lock into a contract to close on home purchase by midnight on April 30, 2010. The closing must occur before midnight on June 30, 2010.
-
As in the previous program, the tax credit applies only on the purchase of an individual's primary residence - no second homes or investment properties.
|
|
|
