Homebuyer tax credit extension and expansion signed into law
President Obama signed into law today an extension of the popular home buyer tax credit through June 2010 and an expansion to include people with higher incomes and some who want to trade up into new homes.
The original up to $8,000 credit was scheduled to lapse on Dec. 1 but will now be in effect through the end of June. Homebuyers must sign a contract before April 30 and close by June 30. The income limits were also raised: Single buyers can now earn up to $125,000 and still get the full credit while a married couple can earn $225,000. The bill also made more homeowners eligible to claim the credit on their taxes. First-time buyers — those who have not owned a home in the past three years — still qualify for an $8,000 rebate. But now people who want to trade up can also qualify. Those who have owned and occupied a residence for at least five years out of the past eight can claim up to a $6,500 tax credit if they close on a purchase by the end of June.
The National Association of Realtors has released a comparison chart of changes in the law which you can read by clicking here.
