President Obama has signed a bill that extends tax credits for first-time homebuyers through April 30, 2010. The extension also opens up opportunities for current home owners.
The amended Senate Bill S1678 extends the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence, if the purchase is closed by June 30, 2010. The tax credit applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010.
For sales after November 6, 2009, S1678 establishes income limits of $125,000 for single taxpayers and $225,000 for couples filing jointly.
The income limits for sales or after January 1, 2009 and on or before November 6, 2009, are limited to $75,000 for single taxpayers and $150,000 for couples filing jointly.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
While the tax credit’s income limits were increased, the documentation requirements were tightened, so be sure to check with your accountant of tax preparer for more information.
