Tax Credit is Extended and Expanded!
Tax break for buying a home has been extended and expanded with today’s legislation.
The legislation will extend the $8,000 homebuyer tax credit to contracts signed by April 30 and closed by June 30. The credit, which many say has recently boosted home sales, was set to expire after November 30.
The Senate’s bill also created a $6,500 credit for those who buy a home after owning one for the last five years. That measure would apply to contracts signed by April 30 and closed by June 30. The current credit defines a first-time homebuyer as someone who has not owned a residence within the past three years.
The Senate bill would raise the adjusted gross income cap to $125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.