Tax Credit Extension, Expansion Passed 

Both the House and the Senate have passed legislation to extend the $8,000 home buyer tax credit to May 1, 2010, for first-time buyers and add a $6,500 tax credit for repeat buyers who have lived in their home for five of the previous eight years. Income limits are expanded to $125,000 for individuals and $225,000 for joint filers. Households who have binding contracts in place by April 30 will be allowed an additional 60 days to complete their transaction. The legislation places an $800,000 cap on the home sale price. The legislation was included in a broader bill to extend unemployment benefits.

Compare the existing credit to the newly passed version in this chart.

Homebuyer tax credit extended into 2010; expanded to “move-up” buyers. In welcome news for the housing industry, the $8,000 tax credit for first-time buyers has been extended through April 30, 2010 and expanded to offer up to a $6,500 tax credit for qualifying repeat buyers.

• Read more about the details of the tax credits, FAQs and a comparison chart.
• See the Internal Revenue Service (IRS) Web Site regarding the tax credit changes.
• Have specific questions or need additional information, contact a tax professional or call the IRS at 800-829-1040.
  
  Yun forecast on the tax credit. Listen to NAR Chief Economist Lawrence Yun's latest podcast for his estimate on how many people will ulitmately use the homebuyer tax credit.
  

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