The $6,500 for existing homeowners is NOT Retroactive (Taxpayers must close on the replacement home between Nov. 7, 2009 and April 30, 2010)
More American homebuyers will get tax relief thanks to changes made to the First-Time Homebuyer Credit. H&R Block (NYSE: HRB) advises the popular credit is now more accessible to existing homeowners and first-time homebuyers in three ways:
1. Through a tax credit worth up to $6,500 for existing homeowners in the market for a new home. 2. Through a new closing deadline of April 30, 2010 — extended from Nov. 30, 2009 — for the $8,000 First-Time Homebuyer Credit. Also, a special provision gives taxpayers two extra months to close if they’ve entered into a contract by April 30, 2010. 3. By increased phase-out limits that start at $125,000 for singles and $225,000 for married filing jointly — up from $75,000 and $125,000 respectively. The new limits apply to homes purchased after Nov. 6, 2009.
Under the new requirements, an estimated 2 million Americans are expected to claim the tax benefit.* The IRS estimates 1.4 million people have already claimed earlier versions of the First-Time Homebuyer Credit.
“From seniors looking to downsize, to families wanting to move, to those shopping for their first home, this credit paves the way for more people to positively impact their taxes through the benefits of homeownership,” said Amy McAnarney, executive director of The Tax Institute at H&R Block.
Existing homeowners must have owned and lived in their current home continuously for five of the last eight years to claim the credit of up to $6,500. Taxpayers must close on the replacement home between Nov. 7, 2009 and April 30, 2010. If taxpayers have entered into a contract on a home by April 30, 2010, they have until June 30, 2010 to close.
Read the whole story at FoxBusiness.com
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