More home buyers, not just first-timers, can get tax credit
By Sandra Block, USA TODAY
(http://www.usatoday.com/money/perfi/columnist/block/2009-11-10-ym10_ST_N.htm)
Summary: President Obama signed a bill into law Friday that extends the first-time home-buyer’s credit until next spring. This credit was included in legislation that extends unemployment benefits in all 50 states. The legislation also expands the credit to include some home buyers who are looking for a nicer place that already own a home. To get this credit you either have to be a first-time home buyer, someone who hasn’t owned a home in the three years before the purchase, or an existing homeowner who has lived in their current home for five out of the last eight years. The eligible first-timer can claim a tax credit for 10 percent of the purchase price up to $8,000, while the eligible existing homeowner qualifies for a tax credit up to $6,500. Both credits are refundable and don’t have to be repaid unless the home is sold within three years. For most the credit can only be claimed if a sales contract is signed before May 1, 2010, and closes before July 1, though there are special circumstances. Not only is the credit expanded to existing homeowners, but the legislation also expands the income cutoffs. Overall, the credit is not available for home purchases that exceed $800,000.
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