There’s still time to take advantage of the first-time homebuyer tax credit. The Worker, Homeownership and Business Assistance Act of 2009 extended the deadline for qualifying home purchases from Nov. 30, 2009 to April 30, 2010. In addition, buyers who enter into a binding contact by April 30 have until June 30 to settle on the purchase. The maximum credit amount remains at $8,000 for first-time homebuyers – buyers who have not owned a primary residence within the past three years.
The new law also provides a tax credit of $6,500 to existing homeowners who have owned and lived in their current residence at least five consecutive years. For all qualifying purchases in 2010, buyers have the option of claiming the credit on either their 2009 or 2010 tax return.
Under the new law, credit is not available if the purchase price of a home is more than $800,000. Also buyers must be at least 18 years old on the date of home purchase, and dependents are not eligible to claim the credit. For
more information about whether
the tax credit can benefit you, visit the IRS Web site or consult with a qualified tax professional.