Tax Credit for Buyers Extended, Expanded

November 6, 2009

The recovering housing industry has been given another hand up by the federal government.

This week, Congress passed legislation which will extend the deadline for an $8,000 tax credit for qualified first-time home buyers to April 30, 2010.  Contracts must be in effect by that date, and the settlement must be completed by June 30, 2010.

The tax credit offer has been expanded to include a $6,500 credit for people who already own their homes and want to purchase another primary residence. Homeowners must have lived in their homes for five consecutive years out of the last eight to qualify for the credit.

In addition, the new legislation increases income eligibility limits to $125,000 for individuals and $225,000 for married couples.

The bill also provides new tax relief benefits for cash-strapped home builders.

READ THE DETAILS ON THE NEW LEGISLATION.