Homebuyer Tax Credit Extended: First Time Homebuyers and Move-Up Buyers!

HIGHLIGHTS:

– $8,000 credit for first-time homebuyers extended until April 30.

– $6,500 tax break for existing homeowners (This is New) who want to move up to a new home, as long as they have lived in their current residence for five consecutive years out of the last eight.

“The Senate on Wednesday voted to extend and expand a tax credit for homebuyers as an added boost for the recovering real estate market, and also approved a provision to continue giving aid to the long-term unemployed.

The measure, adopted on a 98-0 vote, also would extend and expand a tax benefit for businesses with losses. The House is expected to follow suit within days, and President Barack Obama is expected to sign it into law.

To keep fueling the real estate rebound, the legislation would extend the $8,000 credit for first-time homebuyers until April 30. It is set to expire at the end of the month. It also would provide a new $6,500 tax break for existing homeowners who want to move up to a new home, as long as they have lived in their current residence for five consecutive years out of the last eight.

The bill also would increase the level of qualifying incomes to $125,000 for individual tax filers and $225,000 for joint filers. Those earning up to $145,000 individually or up to $245,000 jointly would receive a smaller credit that decreases as income rises. The tax credits apply to home purchases of $800,000 or less.”

Continued…

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