The $8,000 first-time homebuyer credit is close to extension
- Contracts to buy a home must be signed by April 30, 2010, and the deals must close by June 30 in order for a buyer to qualify for the credit.
- The credit would only apply to homes sold for $800,000 or less.
- Homebuyers must have adjusted gross income of less than $125,000 ($225,000 for married couples filing jointly).
- A credit worth up to $8,000 for first-time homebuyers and up to $6,500 for homeowners looking to trade up to a bigger primary residence and who have already lived in their current home for five years.
First-Time Home Buyer Tax Credit – 2009
- The tax credit is available for first-time home buyers only. To be a First Time Home Buyer, you cannot have owned a home in the last three years.
- Tax credit =10 percent of the home’s purchase price
- The maximum credit amount is $8,000.
- The credit is available for homes purchased on or after January 1, 2009 and before
December 1, 2009. - Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
- The tax credit does not have to be repaid.
Senate approves $15,000 tax credit for homebuyers
By DAVID ESPO, Ap Special Correspondent – Wed Feb 4, 6:48 pm ET
WASHINGTON – The Senate voted Wednesday night to give a tax break of up to $15,000 to homebuyers in hopes of revitalizing the housing industry, a victory for Republicans eager to leave their mark on a mammoth economic stimulus bill at the heart of President Barack Obama’s recovery plan.
The tax break was adopted without dissent, and came on a day in which Obama pushed back pointedly against Republican critics of the legislation even as he reached across party lines to consider scaling back spending.
“Let’s not make the perfect the enemy of the essential,” Obama said as Senate Republicans stepped up their criticism of the bill’s spending and pressed for additional tax cuts and relief for homeowners. He warned that failure to act quickly “will turn crisis into a catastrophe and guarantee a longer recession.”
Democratic leaders have pledged to have legislation ready for Obama’s signature by the end of next week, and they concede privately they will have to accept some spending reductions along the way.
Sen. Johnny Isakson, R-Ga., who advanced the homebuyers tax break, said it was intended to help revive the housing industry, which has virtually collapsed in the wake of a credit crisis that began last fall.
The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break for the purchase of new homes only.
Source: AP News
First-Time Home Buyer Tax Credit – 2008
HR3221 – Important Tax Credit Information
- The tax credit is available for first-time home buyers only. To be a First Time Home Buyer, you cannot have owned a home in the last three years.
- The maximum credit amount is $7,500.
- The credit is available for homes purchased on or after April 9, 2008 and before
July 1, 2009. - Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
- The tax credit works like an interest-free loan and must be repaid over a 15-year period.
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