First time homebuyer tax credit now signed into law!

The dream of homeownership is now even closer to buyers: Home Buyer Tax Credit Extended into 2010.

On November 6, 2009 the administration signed The Worker, Homeownership, and Business Assistance Act of 2009 into law which has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. To qualify as a “first time home buyer” the purchaser (or his/her spouse) can not have owned a home in the three years prior to purchase.

Under the new law the tax credit has also been expanded to current home owners purchasing a replacement principal residence. The amount of this credit is up to $6500 and to qualify the current home owner must have lived in their home for any five consecutive year period in the eight years prior to purchase.

To take advantage of the credit, an eligible taxpayer needs to enter into a binding agreement on or before April 30, 2010 and the closing on the home needs to occur no later than June 30, 2010. The tax credit can be claimed on either the 2009 or 2010 tax return.

In order for a home to be eligible for the credit the purchase price needs to be $800,000 or less.

Now people with higher annual incomes can qualify. To get to the full extend of the credit, a taxpayer needs to have modified adjusted gross income (MAGI) of $125,000 or $225,000 for joint filers.

The credit does not have to be repaid if the buyer occupies the home for at least three years.

In addition to that, the new regulations provide for some new benefits for members of the military and certain government workers.

To get more details on the home buyer tax credit please visit:
http://www.irs.gov/newsroom/article/0,,id=204671,00.html

For extended questions and answers session please follow:
http://www.federalhousingtaxcredit.com/faq1.php - if interested in the $8000 first time home buyer tax credit.

or

http://www.federalhousingtaxcredit.com/faq2.php - if interested in the $6500 current home owner tax credit.