First Time Homebuyers and Repeat Buyers Home Tax Credit of 2010
Last week, the president signed a bill that included a new tax credit for both first-time and repeat homebuyers. The new tax credit is an improvement over the previous version, which was only available to first-time buyers and was set to expire on Nov. 30.
Some of the key enhancements include:
- The $8,000 tax credit for first-time buyers has been extended through April 30, 2010.
- Current homeowners are eligible for a $6,500 tax credit through April 30, as long as they have lived in the home they are selling or have sold as a principal residence for five consecutive years out of the last eight years.
- Time has been added to allow for closing the home purchase. As long as buyers have a binding contract by April 30, they will then have until June 30, 2010, to close the transaction.
- Income limits for eligible buyers were increased to $125,000 for single buyers and $225,000 for couples.
- Credit not applicable for pruchases greater than $800,000
The passing of this legislation is very positive news for anyone looking to buy or sell a home. Both first-time and move-up buyers can now take advantage of the new tax credit in addition to today’s historically low interest rates.This has GREAT potential for all homeowners and buyers.
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