Homebuyer Tax Credit Information

President Obama signed legislation on Nov. 6 that extends and expands the U.S. tax credit for homebuyers. The expansion measure includes these provisions:

• Extends the $8,000 first time Homebuyers Tax Credit and creates a new $6,500 tax credit for most other buyers who close on a new home before July 1, 2010.
• Homebuyers with contracts as of April 30 qualify for the credit so long as they close the transaction within 60 days.
• The full credit is available to homebuyers with incomes of up to $125,000 on a single return or $225,000 for a joint return.
• Not available for homes sold for more than $800,000.
• Homebuyers who owned in the previous three years are eligible only if the previous home they are leaving was used as a principal residence for five consecutive years in the last eight.
• Provides the IRS greater oversight in processing the credit and requires that the buyers claiming the credit be 18 or older.
• Extended deadlines are available to certain members of the military, military intelligence and foreign service who are on qualified extended official duty or were deployed overseas for 90 days or more during the program's availability period.