First-Time Home Buyer Tax Credit Extended and Expanded to Include Move up Buyers.

Both the Senate and the U.S. House of Representatives have voted to extend the first- time home buyer tax credit and have added a benefit to existing homeowners.

The current $8,000 first-time homebuyer tax credit is extended until April 30, 2010; there is also a 60 day extension if a purchase contract is in place prior to the April deadline.  The new bill also includes a credit for buyers who are not first-time buyers.  Some buyers are eligible for a reduced credit up to $6,500 if they purchase a new home and have lived in their previous residence for 5 years.  This is a great move up incentive.

Another benefit of the new bill is increases in the income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000 respectively.  There is also a purchase price cap of $800,000.

Taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns.  A great link for more information is www.federalhousingtaxcredit.com.

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