On Nov 6th, The President signed the bill that extends the $8,000 First-Time Homebuyer Tax Credit. The new bill not only extends the credit for first-time homebuyers but also extends a tax credit to “current homeowners” who purchase a home. Current homeowners who have lived in their current residence for 5 consecutive years and are repurchasing their next property can receive a $6,500 tax credit. To be eligible for the $6,500 credit you must purchase a home priced no higher than $800,000 with an income cap of $125,000 (individual) and $225,000 for married couple. The income cap is $75,000 (individual) and $150,000 (married) for the $8,000 First-Time Homebuyer Credit. You must live in the home for 3 years or you will be required to repay the credit. To be eligible for the tax credit you must have an accepted sales contract in on a home prior to April 30th, 2010 and you have to close prior to June 30th.
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