If you have recently considered purchasing a new home, added incentives are now available with the recent extension and expansion of the First-Time Home Buyers Tax Credit. The previous deadline of December 1st , 2009 has been extended for first-time home buyers, and current homeowners are now included in the tax credit savings, too.

What has changed:

The most important change is that repeat homeowners can now claim a  tax credit of up to $6500 on qualifying home purchases.  Income limits have also been raised for both first time and existing buyers, and purchase dates have been extended through April 30, 2010.

 Under the new provisions:

·         The purchase price of the new home must be $800,000 or less.

·         The income limit for single buyers is now $125,000, up from $75,000; the income limit for married couples filing jointly is now $225,000, up from $150,000. There is an additional $20,000 phase out.

·         In general, homes must be purchased by April 30th, 2010.  According to the National Association of Realtors, as long as a written binding contract to purchase is in effect  on April 30, 2010, the purchaser will have until July 1, 2010 to close.

·         In the case of existing homeowner purchases, a current homeowner must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.

·         The purchaser must attach documentation of their purchase to their tax record to satisfy the Anti-fraud rule. To claim the credit, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns.

What remains the same:

·         First-time home buyers can receive a tax credit of up to $8000.

·         To qualify, first-time buyers must not have had an interest in a principal residence for 3 years prior to purchase.

A comprehensive list of other qualifying details for first-time home buyers from the original legislation is available on prior HomeBuyingForLess posts.

If you are ready to take advantage of the extended and expanded Home Buyers Tax Credit legislation, our team of real estate experts at HomeBuyingForLess can make the process easy. You will also get a money-saving credit from us in the form of our Buyer’s Rebate!

Call us today at 1-888-201-8565.