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$8,000 First Time Home Buyer Tax Credit Extended

The $8,000 First Time Home Buyer Tax Credit [1] that was set to expire on November 30 was extended today. The new deadline to take advantage of the first time home buyer credit is to have a signed contract by April 30, 2010 and close on the house by June 30, 2010.

Update: The first time home buyer tax credit is extended [2] until Sept. 30, 2010.

First Time Home Buyer Tax Credit

As a reminder, here are some of the rules for the first time home buyer tax credit [1]:

  • The credit is for $8,000 or 10% of the home’s value, whichever is less.
  • The credit is refundable.
  • The credit is for primary homes that cost $800,000 or less.

The income limits also went up with the extension. Original phaseouts were for incomes between $75,000 to $95,000 for single and $150,000 to $170,000 for couples. Phaseouts will now begin at $125,000 for single and $225,000 for couples.

In addition to extending the date, the bill also included a $6,500 Home Buyer Tax Credit for Existing Homeowners [3].