First Time Home Buyers Tax Credit Extended to April 30th, 2010

Just recently the U.S. House of Representativesowners to sell their first homes in exchange for
decided to pass a new bill that will grant an extensionpurchasing larger and more expensive homes, basically
and expansion of the Federal Tax Credit for First-timetheir dream homes.
Home Buyers.  This extended tax credit will be goodAdditional stipulations in the bill include the ability for
through April 30th, 2010 that now also includes a 60taxpayers to claim the credit on purchases that are
day extension should there be a binding contract incompleted in 2010 on their 2009 income tax returns. 
place prior to the deadline.The bill also maintains that the home buyers utilize the
The tax credit for first time home buyers will still standhome as their primary residence for 36 months after
at a tax credit of up to $8,000.  Existing homeownersits purchase; otherwise the credit must be repaid. 
however, will receive a reduced credit of up toHowever, for any active duty military personnel this
$6,500.  In order to for existing homeowners to berequirement is waived should they need to move due
eligible for the $6,500 tax credit, they have lived in theirto military order.
current residences for at least five years.  AnotherSo far this tax credit has had great success. 
change in the bill is an increasing of the qualifyingAccording to the California Association of Realtors,
income limits.  Single tax filers’ income limits were“nearly 40 percent of first-time buyers said they
once $75,000 and joint filers were once $150,000. would not have purchased a home if the federal tax
The new qualifying income limits are $125,000 for singlecredit for first-time home buyers was not offered. 
tax filers and $225,000 for joint filers.  The purchaseThis underscores the significance of the federal tax
price of the home is capped at $800,000.  Thesecredit to the housing market’s recovery in
new changes are aimed to encourage existing homeCalifornia.