$8,000 Homebuyer Credit for 2009/2010

Congress heard you on the need to both extend and expand the homebuyer tax credit to continue stimulating the housing sector of the economy. The Senate voted 98-0 and the House voted 403-12 on legislation that includes the extension and expansion of the credit.

The biggest changes are as follows:

• Extended from November 30, 2009 to April 30, 2010
• For the $8,000 credit:  First time homebuyers should not have owned a home for 3 years prior to purchase 
• For the $6,500 credit:  Current homeowners must have used the home as a primary residence for 5 consecutive years
• Income limits have been increased to $125,000 for a single home buyer and $225,000 for a married couple buying a home
• The maximum sales price on the home being purchased is $800,000   

More information on the tax credit and what it means to you:

Changes to the Homebuyer Tax Credit Law
Frequently Asked Questions About the New Bill
 In Depth: 2009 First-Time Homebuyer Tax Credit

ABOUT THE 2008 / 2009 TAX CREDIT

Effective January 1, 2009, qualified home buyers may be eligible for a federal tax credit of up to $8,000. 

• First Time Homebuyers Only, which means that the home buyer must not have owned a principal residence during the three year period prior to the purchase.
• The credit is up to 10% of the sales price of the home, up to a maximum of $8,000
• The qualification period is January 1, 2009 to December 1, 2009
• No Recapture:  unlike the credit program from 2008, this tax credit doesn't have to be repaid unless the residence is not the principal residence for at least 3 years.
• It's a true credit.  The credit can be claimed even if the taxpayer has little or no federal income tax liability to offset.  A refund check may be issued to the taxpayer for a portion or even all of the refundable tax credit, depnding on the taxpayer's tax liability.
• It comes with some restrictions on the amount of income you make.  Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.  Partial tax credits may be available for taxpayers with incomes above the limit.
• If you haven't filed your income tax for 2008, you can claim the credit on your 2008 returns, provided the purchase happened AFTER January 1, 2009.

Talk to your tax professional for more details!

Need information about the 2008 Home Buyer Tax Credit?  Click Here.