Obama Extends Tax Credit to Current and First Time Home Buyers
November 9, 2009
Are you looking to buy a home in the next few months? President Obama has extended the tax credit to current and first time home buyers. Previously, the First Time Home Buyers Tax Credit was only available until the end of this month. However, the $8000 tax credit has been extended for all homes purchased between November 6, 2009 and April 30, 2009. Further still, if you have a binding sales contract signed by April 30, 2009, you will qualify for up to an $8000 tax credit as long as your escrow closes before July 1, 2009.
The tax credit is not only available to first time home buyers (those buyers who have not owned a home in the last three years) anymore. Now, current homeowners who have used their home for at least five consecutive years of the last eight years as their primary residence are eligible for up to $6500 in tax credit.
For both first time home buyers and existing home owners, the income limits are the same. If you are single or married and file as head of household, your modified adjusted gross income (MAGI) cannot exceed $125,000 to eligible for the full amount of the credit ($8000 for first time home buyers and $6500 for current homeowners). For married couples who file jointly, your MAGI has to be less than $225,000. However, if your income is between $125,000 and $145,000 for single or head of household or $225,000 to $245,000 for married couples filing jointly, you are eligible for a portion of the appropriate tax credit. If you make more than that, you are not eligible for any of either tax credit.
Only single-family homes, townhomes or condominiums purchased as used as a primary residence are eligible for a tax credit. Vacation homes or rental properties are not eligible. The home purchase must be less than $800,000 as well. If you purchase and live in the home full-time for three years, you do not have to repay the tax credit you receive. However, if you sell the home before the three years, you will have to pay back the tax credit to the government.
If you are looking to relocate to Reno, please contact me. I can help.
