Wow here is what you need to know If you thought you could only buy if you hadn’t bought real estate before or if you thought the tax credit ended on November 30th, 2009. Think again, because you now have until April 30th, 2010 to be under contract and until June 30th, 2009 to close!! Members of the military, military intelligence and foreign service who are on qualified extended official duty are not subject to the recapture fee and individuals who have been deployed overseas for 90 days or more in 2008 or 2009 can claim the credit through April 30, 2011!!
The $8,000 first time Homebuyers Tax Credit creates a new $6,500 tax credit for homeowners buying a new home by July 1, 2010. The homebuyer tax credit expansion measure includes these provisions:
Extends current credit.
Homebuyers with contracts as of April 30, 2010 qualify for the credit so long as they close the transaction within 60 days.
The full credit is available to homebuyers with incomes of up to $125,000 for a single return or $225,000 for a joint return.
Not available for homes costing over $800,000.
Homebuyers who already own a home are only eligible if the home they are leaving has been used as a principal residence for five consecutive years in the last eight.
Provides authority to the IRS to provide greater oversight while processing the return and requires that the taxpayer claiming the credit be 18 or older.