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Facts About The
Federal Homebuyer Tax Credit Expansion & Extension
The United States Congress has passed a bill that extends and expands the Federal
Homebuyer Tax Credit, and the President signed it into law on Friday, November 6th,
2009. Here is a brief overview of the program:
The current $8,000 federal tax credit for first-time homebuyers is extended to
And now, buyers who have owned and resided in their current home for any 5-consecutive year
period during the last 8 years prior to purchase of a new home would be eligible for tax credits of
up to $6,500.
To be eligible to claim the $8,000 credit, first-time buyers must enter into a written binding
contract for purchase before
To be eligible to claim the $6,500 credit buyers who have owned and resided in a home for
any 5-consecutive year period during the last 8 years, must close after the date of enactment
(
To qualify for either credit, the price of the home being purchased cannot exceed $800,000.
The new law will increase the income ceiling for qualification from $75,000 to $125,000 for
individual taxpayers.
And the income ceiling for qualification increased from $150,000 to $225,000 for joint filers.
The credit would be extended an additional year, until
serving outside the
This is probably the last extension, said Senator Johnny Isakson of
executive who championed the credits.
Carryover Provisions
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Real Estate Tips
Homebuyers Should Hire an Inspector
Homebuyers are urged to conduct an inspection even if the home comes with a warranty. They should also ensure that their inspector has plenty of experience and abides by the membership requirements of the American Society of Home Inspectors or other trade groups.
Home Warranties Warrant Close Attention
Warranties can help make homebuyers more confident about the quality of their new dwellings.
Flaunt Your Home's Curb Appeal
When selling your home, curb appeal is essential, because it can create a first impression of your home.
Too Much Insurance is Better Than Not Enough
Research shows that 64 percent of the nation's homes were about 27 percent underinsured in 2003. But owners can ensure that they have adequate coverage by updating their policies to account for changes in replacement value.
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