Homebuyer Federal Tax Credit Extended and Expanded

By: Danny Lipford

If you’re considering buying a home, now is the time! The $8,000 federal tax credit for new homebuyers—which was to expire November 30, 2009—has been extended through April 30, 2010. In addition, it’s been expanded to include a $6,500 tax credit for existing homeowners who buy a home as well.

Homebuyers Tax Credit for New Homeowners

To qualify for the $8,000 new homebuyer tax credit:

  • You can’t have owned a home in the past three years.
  • The house you purchase must cost $800,000 or less and serve as your primary residence.
  • The purchase must be made between January 1, 2009 and April 30, 2010.
  • You must live in the home for at least three years after purchase.
  • Your income can’t exceed the maximum amount allowed.

For more information, check out our article on:
How to Claim the Federal Homebuyer Tax Credit for New Homeowners

Homebuyers Tax Credit for Existing Homeowners

To qualify for the $6,500 tax credit for current homeowners:

  • You must have owned your present home for at least five years.
  • The house you purchase must cost $800,000 or less and serve as your primary residence.
  • The purchase must be made between November 7, 2009, and April 30, 2010.
  • You must live in the home for at least three years after purchase.
  • Your income can’t exceed the maximum amount allowed.

For more information, go to our article on:
How to Claim the Federal Homebuyer Tax Credit for Existing Homeowners

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