Sunday, November 15, 2009

Tax Credit Information - DEADLINE April 30, 2010

In this post I have included information that should answer any questions about the Federal Housing Tax Credits.

After a brief explanation, you will find links below to FAQ's and a Quick Reference chart.

Please feel free to contact me at 210-979-6700 or 210-788-9600 for more resources.

The $8,000 homebuyer tax credit for first-time buyers will be extended through April 30 of next year and buyers will have an additional two months, until the end of June, to close. First-time buyers who are in the process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline. The new legislation increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.

For the first time, the new legislation makes buyers who already own a home eligible for a credit. A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less.

The legislation takes effect December 1 and is not retroactive. Both credits are available only for primary residences, not second homes or investment properties.

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