In an effort to stimulate the floundering economy, President Obama on November 6 extended and expanded the first-time homebuyer’s tax credit.
The good news is that it is no longer just for first-time home buyers.
The tax credit was set to expire on November 30. The new law extends the first-time homebuyer tax credit until next spring. You can claim the credit so long as you sign a sales contract before May 1, 2010, and close before July 1, 2010.
You can qualify if:
- You and your spouse are both first-time homebuyers (defined as those who have not owned a home in the three years before the new purchase), you can qualify for a tax credit of 10 percent of the home’s purchase price—capped at $8,000 (an $800,000 purchase price).
- You have owned a home for the past five of the past eight years, and want to buy a new home. This tax credit is capped at $6,500.
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