Home Buyer Tax Credit Extended and Expanded by The Senate

home-buyer-tax-credit-extended-and-expanded-by-the-senateBeside the current low mortgage rates, you now have another incentive to buy a home. The Senate has voted to expand and extend the first time home-buyer tax credit that was due to expire at the end November 2009. The House is expected to vote and pass it later today.

For first time home-buyers which includes anyone who hasn't owned a home in the past three years, the $8,000 tax credit has been extended to April 30, 2010. You have to sign a sales contract by April 30 and close on the home by June 30, 2010.

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The credit has been expanded to include a $6,500 tax credit for home-buyers who have owned their home for at least five years. The tax credit is only for a home purchase that will be your primary home and costs $800,000 or less.

The credit is also phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000. If you're in the military serving outside the United States for at least 90 days, the tax credit is extended for another year.

Author: Lisa Graham
November 5th, 2009