Bill Introduced to Extend the First-Time Homebuyer Credit
On April 28, 2010, Indiana Democrat, Brad Ellsworth, introduced a bill, H.R. 5168, to extend the first-time homebuyer credit through December 31, 2010. The orignal credit ran out on April 30, 2010. The tax credit for first-time home buyers is $8000 while the tax credit for repeat home buyers is $6500. To qualify as a repeat buyer, you must have owned your home for five consecutive years out of the prior eight years.
Further, if you are a single taxpayer, your income must be lower than $125,000. The limit is $225,000 for married couples filing jointly. The home being purchased must be valued at $800,000 or less to qualify. If the home is purchased from a relative or your spouse, it also will not qualify for the tax credit.
If you purchased your home in 2010, you may amend your 2009 return to include the tax credit. The IRS requires a copy of the HUD statement along with form 5405 to be filed along with the tax return.
To speak more about the first-time homebuyer credit, please contact a tax professional to answer all your questions.
