Homebuyer Tax Credit Extended and Expanded

Last week, Congress passed a bill that would extend and expand the current first time homebuyers tax credit that was set to expire November 30, 2009.

Below, is a brief overview of how the new credit can work for you. This is a great opportunity for first-time homebuyers and move-up, as well as move-down, homebuyers. The agents at Atlanta’s Circle 75 townhouses would love to answer any questions you have about the tax credit, and show you how we can help you to take advantage of some amazing deals.

• Extends the $8,000 first time Homebuyers Tax Credit and creates a new $6,500 tax credit for existing homeowners buying a new home. Existing homeowners must have lived in their current home for the past 5 years.
• Homebuyers with contracts as of April 30 qualify for the credit as long as they close within 60 days, or June 30, 2010.
• The full tax 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.