Homebuyer tax credits extended, expanded

Posted: 11/5/2009
Columbus Board of REALTORS®

The House and Senate have overwhelmingly approved a measure that includes an extension of the $8000 first homebuyer tax credit that was set to expire at the end of the month. In addition, the bill creates a $6500 tax credit for homeowners who purchase a new residence. The $8000 tax credit will be open to new homebuyers through April of 2010. To be eligible, first time homebuyers must have an income of not more than $125,000 for individuals and must be acquiring a home for $800,000 or less. The IRS will have increased ability to recognize and stop fraudulent use of the tax credit.The $6500 tax credit is available to those who would like to acquire a new home after having occupied their current residence for at least five years. The $24 billion bill has substantial momentum due to the inclusion of jobless benefits that extend the amount of time individuals can claim unemployment by up to twenty weeks. Because of this, the measure could be on the president's desk as early as Friday.