Can it be true??? Is Congress going to extend the home buyer tax credit? It appears so. It passed the Senate (98-0) and the House (403-12), and it is now on its way to President Obama's desk for his signature. Remember, this is a tax CREDIT of up to $8,000. So when you file your tax return for 2009 and now for 2010, if you owe $8000 in taxes, then you will owe nothing. Similarly, if you don't owe anything, then you will receive a check for $8,000.
The new legislation will increase the qualifying income to $125,000 for single tax payers and $250,000 for joint taxpayers, which is up from the current $75,000 and $150,000 limit. Now here is the best part. The legislators have decided to include a new tax credit up to $6,500 for existing homeowners who purchase a new home. In order to qualify as an existing homeowner, you must have resided in the home to be sold, or being sold, for five of the previous eight years. The agreement of sale will need to be signed by April 30, 2010 and settled by June 30, 2010.
Homebuyer Tax Credit Changes - Your Guide to the Tax Credit
Happy Home Shopping!