On November 5, 2009, the United States Congress completed action on legislation to extend the existing First-time Homebuyer* Tax Credit and expand eligibility to include qualified existing homeowners**. This legislation was signed into law on November 6, 2009.
The legislation will extend the $8,000 credit for first-time home buyers for homes purchased by April 30, 2010 and closed by June 30, 2010. It has also been expanded to include a new $6,500 credit for existing homeowners who are purchasing a new principal residence. An existing home owner can claim the $6,500 tax credit if they have been residing in their principal residence for five consecutive years out of the last eight.
Additionally, the income eligibility limits to claim the full credit amount for both groups of home buyers have been raised from $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return to $125,000 for individuals and $225,000 for married couples. Full details are available on the National Association of Homebuilders (NAHB) website at www.nahb.org.
*First-time homebuyer is defined as any individual (excluding a non-resident alien) who has not owned a principal residence during the past three years and is purchasing the new home as their primary residence. First-time Homebuyer Tax Credit is subject to 3-year ownership requirement. **Existing homeowner (excluding non-resident aliens) is defined as any individual who has owned and occupied the same residence as their principal residence for any 5 consecutive-year period during the 8-year period. Qualified existing homeowners can now claim a tax credit not to exceed $6,500. Tax Credit is subject to eligibility requirements. Gladstone Homes cannot provide guarantee of actual savings and does not guarantee the homebuyers' qualification for the federal tax credit. Tax laws are subject to change.
Providing this information is not tax advice; homebuyers should consult with a tax professional. This material shall not constitute a valid offer in any state where prior registration is required or if void by law.