The $8,000 FEDERAL TAX CREDIT for first-time home buyers is being extended! In addition, homeowners can get $6,500 from the government if they buy another house.
Buyers have until April 30, 2010 to sign a purchase contract and until June 30 to close. Taxpayers can claim the credit on their federal tax returns. If the credit exceeds the tax bill, the government will issue a payment.
The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000. To be eligible for the $6,500 tax credit, homeowners must have used the home they currently own as their primary residence for at least five of the past eight years. The next home they buy must become their primary residence, whether they sell their previous home or keep it as a second home or rental property.
