Liberalized Homebuyer Credit Extension

Congress has passed legislation that expands the timeframe and scope of the homebuyer credit; the President’s signature is a foregone conclusion. As you probably know, the first-time homebuyer credit was set to expire November 30th. Under this program, a first-time homebuyer would be eligible for a refundable tax credit of up to $8,000 on his or her income tax return providing the purchase took place by the program expiration date.

Under the new program, the credit for first-time homebuyers is extended to include purchases made by April 30, 2010. Providing a contract is executed by that date, the closing of the purchase must take place by June 30, 2010 in order to qualify.

Long-time residents, defined as those who have maintained their current home as their primary residence for 5 consecutive years out of the last 8 years, are also eligible to receive a $6,500 tax credit upon the purchase of a subsequent principal residence. The April 30, 2010 contract date and June 30, 2010 closing date apply for this credit as well. Consistent with the prior program, a taxpayer may amend his or her 2009 income tax return to claim the credit even if the qualifying purchase did not take place until 2010.

There are income phase-outs, home price caps, age requirements and other qualifiers that limit the availability these credits, so please be sure to give us a call to make sure your transaction qualifies. The new legislation also includes business tax provisions upon which we will report soon.

About dentbaker

Accounting Service Firm
This entry was posted in Taxation and tagged . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s