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Tax Credit Extended – and Expanded to Include Current Homeowners

November 9, 2009 | By Kelley Koehler | Filed Under Home Buying 

Well, Friday it became official.  Remember that $8000 tax credit I kept talking about where you had to be a first time buyer and close before the end of November 2009?  It’s been extended – and expanded.

If you’re a first time buyer, you don’t have to rush to close before the end of November any more to get your $8000 tax credit.  Now, you have to be in a written binding purchase contract by April 30, 2010, and have to close before July 1, 2010.

Additionally, income limits have been raised for the program: to $125,000 if you’re single and $225,000 if you’re married.

The additional big news is that if you already own a home, you can get up to $6500 as a tax credit incentive to purchase.  They define home owner as someone who has used a home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.

Whether you’re a first time buyer or an existing home owner, there are now limits on the home price.  You can buy up to $800,000 and still get the credit.

There are a couple other smaller details as well – the National Association of REALTORs put out a helpful little chart to help you figure out if you qualify for the tax credit.  They also have some questions an answers here, to help clarify the rules. 

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