Posted on | November 6, 2009 | No Comments
The much used first time homebuyer’s tax credit has received congressional approval and has just been signed by the President . The measure was included in H.R. 3548, extension of unemployment benefits. According to the National Association of Realtors, as many as 1.2 million new and resale home transactions were completed as a result of the first time homebuyer’s credit. The extension of this credit, which has proven very popular amongst first time homebuyers, will continue to help the struggling home market. The $8,000 credit was due to expire on November 30th but will instead be extended for all first time homebuyers who enter into contracts prior to April 30th, 2010 and closed by June 30th, 2010. Also included in the bill is a new credit of up to $6,500 for some existing homeowners. To qualify for this new credit, homeowners must have been in their current residence for a consecutive five year period. The new bill also raises the qualifying income limits to $125,000 for single taxpayers and $115,000 for married filing joint taxpayers. The current limits are $75,000 and $150,000.