Congress Extends $8000 Tax Credit

The U.S. House of Representatives voted today to extend and expand the First Time Home Buyers $8000. Tax Credit that was unanimously passed by the U.S. Senate last night. The bill not only extends the $8000. tax credit to first time home buyers (those who haven’t owned a home in the past 3 years) but also provides a $6,500. tax credit to those who have owned a home before. The new credit was extended through April 30, 2010 . As with the previous credit, home buyers must qualify for the new tax credit.

    First Time Home Buyers

  • Income Limits – $125,000. single or $250,000. married
  • Limitation on Cost of Home – $800,000.
  • Termination of Credit – April 30, 2010. Must close by July 1, 2010
    Current Homeowner

  • Definition – Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
  • Income Limits – $125,000. single or $250,000. married
  • Limitation on Cost of Home – $800,000.
  • Termination of Credit – April 30, 2010. Must close by July 1, 2010

In addition, a new “anti-fraud” rule was attached to the new bill which requires the purchaser to attach documentation of purchase to the tax return.

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