The $8000 federal tax credit has been extended and expanded! The credit, which was supposed to expire 12/1/09, has now been extended to 4/30/10. In addition, there will be a 60-day extension if you go into binding and official contract prior to April 30th.
In addition to extending the $8000 1st time homebuyer tax credit, it has been expanded in many ways:
- Qualifying income limitations increased. Single filers can now qualify if their Modified Adjusted Gross Income (MAGI) is up to $125,000 (up from $75k). Joint filers qualification increased from $150k to $225k.
- NEW: Existing homeowners that have lived in their current residence for at least 5 of the previous 8 years and are buying a new home now qualify for a $6,500 credit, assuming MAGI above.
Another highlight is that taxpayers can claim the credit on their 2009 tax returns for purchases made in 2010.
The other details remain the same, in regards to the definition of a first time homebuyer (must not have had ownership in the previous 3 years) and how long you must own the home in order to avoid paying back the credit (the home must remain your primary residence for 3 years after the purchase).
