First Time Homebuyer PDF Print E-mail
Thursday, December 10, 2009 11:11 AM
First Time Home Buyer
The first-time homebuyer credit was set to expire November 30, 2009. However, new legislation was signed into law on November 6, 2009 to extend the $8,000 credit to April 30, 2010. The taxpayer must enter into a contract to buy a principal residence on or before that date, and close on the property no later than June 30, 2010.

The new legislation also gives existing homeowners at credit of up to $6,500 towards the purchase of a new principal residence. To qualify for this credit, they must owned and lived in the same principal residence for any five consecutive years out of the last eight that end on the date the new principal residence is purchased.

The income limits for the eligibility for the credit have been raised. For homes purchased after November 6, 2009, the credit will begin to phase-out once an individual’s modified adjusted gross income reaches $125,000 and fully phase-out at $145,000. For those filing jointly, the phase-out range is between $225,000 and $245,000 of MAGI.
Last Updated on Wednesday, December 16, 2009 02:21 PM