Federal Tax Credit

Lyon Real Estate
Elk Grove Office

Federal tax credit extended, expanded

The federal tax credit for home buyers was signed into law by President Obama Friday, Nov. 6. The tax credit, which was set to expire Nov. 30, has been extended through April 30, 2010 with a 60-day extension if a binding contract is in place prior to deadline. It also was expanded to include existing homeowners who have lived in their primary residences for five consecutive years out of the last eight years.

First-time home buyers still may be eligible for a tax credit of up to $8,000, while existing homeowners may receive a credit of up to $6,500. The bill also increases the qualifying income limits from $125,000 for single tax filers and $245,000 for joint filers, The purchase price of the home is capped at $800,000 in both instances.

Federal Tax Credit Summary

$8000 or 10% of sales price whichever is less for 1st time homes buyers ( did not own a home for the last 3 yrs)

$6500 or 10% of sales price whichever is less for home owners ( lived in their home for 5 of the last 8 yrs)

4/30/2010 under contract deadline, 7/1/2010 close of escrow deadline

Must occupy the home for 3 years

$800,000 sales price limit

Must be 18 yrs old

Information subject to change, contact IRS 800 829-1040, interested parties are advised to independently verify the above information contact an accountant or other qualified tax professional.