Monday, November 23rd, 2009
The tax break for buying a home was signed by legislation on November 6th and will extend the $8,000 homebuyer tax credit to contracts signed by April 30, 2010 and closed by June 30, 2010. The controversial credit, which many say has boosted home sales in recent months, was set to expire after November 30, 2009.The bill also creates a $6,500 credit for those who buy a home after living in their current house at least five years. That measure would apply to contracts signed by April 30, 2010 and closed by June 30, 2010. The current credit defines a first time homebuyer as someone who has not owned a residence within the past three years.
The credit would be available only for the purchase of principal residences priced at $800,000 or less.
The bill will raise the adjusted gross income cap to $125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000 or $150,000 for joint filers.
Tags: TAX CREDITS, TAX INFORMATION FOR REALTORS AND CLIENTS
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