$8,000 Tax Credit: Extended Until April 30, 2010

You read that right, the Tax Credit has been extended until April 30, 2010. Now here is the scoop on the changes.

The original legislation provided an $8,000 tax credit for first-time homebuyers. The legislation passed by the Senate this week extends the $8,000 credit and expands it to provide a $6,500 tax credit to people looking to buy a new home after having owned and lived in a home for more than five years.

More than 70 percent of existing homeowners will now be eligible to take advantage of this program and use the credit to buy a new home.
Summary of the legislation:

Extends the $8,000 first time Homebuyers Tax Credit and creates a new $6,500 tax credit for homeowners buying a new home from December 1, 2009 to April 30, 2010.
Homebuyers with contracts as of April 30th qualify for the credit so long as they complete the transaction within 60 days.

Available to homebuyers with incomes of up to $125,000 for a single return or $225,000 for a joint return.

Available for homes costing up to $800,000.

Homebuyers who already own a home are only eligible if the home they are leaving has been used as a principal residence for five years or more.

If you're interested in finding a home in the Nashville area, try our convenient home search here or call Josh Anderson at (615) 509-7000.

$8,000 Tax Credit Extension: Will it Become a Reality?

Congress on Thursday voted to extend the current home buyer tax credit through April 30 and to extend a $6,500 credit to buyers who have owned their current home for five years. The credit, which still must be passed by the House of Representatives, wouldn’t cover second homes and is limited to homes of less than $800,000.
The credit would also be extended to a slightly larger pool of buyers by raising income caps to $125,000 for single filers and $250,000 for joint filers, up from $75,000 and $150,000, respectively. The National Association of Home Builders used Census data to estimate that around 14% of first-time buyers were ineligible for the current credit but will be eligible with the expanded income limits.
It's estimated that around 70% of current homeowners will be eligible for this Tax Credit.