An Extended and Expanded Federal Home buyer Tax Credit
Since I had clients ask me today about the Federal Home buyer Tax Credit, I thought it might be a good idea to put some basic information on my blog about this new law.
As many already know, Congress did pass and President Obama signed the legislation that has both extended and expanded the home buyer tax credit.
First Time Home Buyers: For those who are purchasing their first home, the tax credit of $8,000 has been extended to April 30, 2010. If one is in a binding contract by April 30, 2010, and closes escrow on or before June 30, 2010 you will still qualify for this credit. Then there is the expanded version of this legislation, which will help people who already own homes.
Move Up Home Buyers: Those who have owned their current home for at least five years are now eligible, subject to income limits, for a tax credit of up to $6,500. The credit is available for the purchase of a principal home costing $800,000 or less. So a vacation home would not work into this equation.
If you have been sitting on the fence, trying to decide if this is the time for you to jump in and buy your first home, or if you are looking to move up, one of these tax credits may be of help to you. Always remember to consult with your tax advisor about this new legislation as there are limitations that may apply to your situation.
