Thursday, April 29, 2010

The Rush is on to Beat the First-Time Homebuyer Credit Deadline

One more shopping day until the expiration of the Homebuyer Credit.

The new law that went into effect November 6, 2009 extended the first-time homebuyer credit five months and expanded the eligibility requirements for purchasers. The Worker, Homeownership, and Business Assistance Act of 2009 extended the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. Additionally, if a buyer entered into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase.
The maximum credit amount remains at $8,000 for a first-time homebuyer –– that is, a buyer who has not owned a primary residence during the three years up to the date of purchase. But the new law also provided a “long-time resident” credit of up to $6,500 to others who do not qualify as “first-time homebuyers.” To qualify this way, a buyer must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence.

For all qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 tax returns.

For all the details of the program:  First-Time Homebuyer Credit

It will be interesting to see what affect the end of this program has on existing and new home sales.