$6,500 Existing Homebuyers Credit
$6,500 home buyer tax credit
Long time resident of the same main home credit by the IRS – supplements the popular $8,000 credit for first-time purchasers. Owners of existing homes – specifically taxpayers who have occupied the same property as a principal residence for any five consecutive years during the previous eight years – may not be able to claim a tax credit on a purchase of another house they intend to use as a principal residence.
The credit is for up to 10 percent of the price of the replacement home, capped at $6,500. The purchase contract must be dated anywhere from Nov. 7, 2009, to April 30, 2010, and the closing must occur no later than June 30, 2010. Members of the armed forces and federal diplomatic and intelligence personnel stationed overseas get an extra year to claim the credit.
New $15,000 Housing Tax Credit
Will the $8,000 First-Time Home Buyer Tax Credit Expand to $15,000?
To again help the ailing housing market, Sen. Johnny Isakson, a Republican from Georgia has introduced legislation that would beef up the tax credit for first-time home buyers. Under the terms of his bill, the size of the credit would expand to a maximum of $15,000 from the previous cap of $8,000, and it could be taken by anyone who buys a primary residence, instead of only by first-time home buyers. The bill would also remove the income limits that had prevented individuals making more than $75,000 a year from claiming the credit, which would be available for a year after the date of the bill’s enactment.