Nov 6, 2009 - It's official! President Barack Obama, this morning, signed legislation that extends a first time home buyer tax credit and extends a smaller tax credit to move-up and other buyers.
The First Time Home Buyer Tax Credit has been extended to April 30, 2010, longer for military personnel.
The extension and expansion of the popular home buyers tax credit gives both new and move-up buyers a tax incentive to buy a home until at least April 30, 2010.
As an enticement to former renters to join the ranks of home ownership, the $8,000 credit has been widely considered a success. An estimated 1.4 million first-time home buyers across the country have grabbed the "freebie" this year.
A new credit of up to $6,500 is available to qualifying existing homeowners who buy a new primary residence (or have one built) by April 30, 2010, if they have lived in their existing home for five consecutive years over the last eight years. Second homes don't qualify.
The credit can only be claimed on primary residences purchased for less than $800,000. And as long as they use the property as their primary residence for three or more years after the purchase, buyers don't have to pay it back. Furthermore, buyers can claim the credit on their 2009 taxes, even if the purchase was made in 2010 by filing an amended return.
Here's a quick recap of the extension's new guidelines:
- Buyers who have owned their current homes at least five years would be eligible, subject to income limits, for tax credits of up to $6,500.
- First-time home buyers — or people who haven't owned a home in the previous three years — could get up to $8,000. To qualify, buyers have to sign purchase agreements before May 1 and close before July 1.
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![I tell you the truth, no one can see the kingdom of God unless he is born again. [John 3:3]](images/fish_white1.gif "I tell you the truth, no one can see the kingdom of God unless he is born again. [John 3:3]")
