First-Time Homebuyer Credit Extended to April 30, 2010; Some Current Homeowners Now Also Qualify

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A new law that went into effect Nov. 6 extends the first-time homebuyer credit five months and expands the eligibility requirements for purchasers. The Worker, Homeownership, and Business Assistance Act of 2009 extends the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase.

The maximum credit amount remains at $8,000 for a first-time homebuyer – that is, a buyer who has not owned a primary residence during the three years up to the date of purchase. But the new law also provides a “long-time resident” credit of up to $6,500 to others who do not qualify as “first-time homebuyers.” To qualify this way, a buyer must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence.

For all qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 tax returns.

The new law raises the income limits for people who purchase homes after Nov. 6. For homes purchased prior to Nov. 7, 2009, existing income limits remain in place. Several new restrictions on purchases that occur after Nov. 6 go into effect with the new law – see the full article for this and other details. For more details on the credit, visit the First-Time Homebuyer Credit page on IRS.gov.

Related Items:

IRS YouTube Videos    English   |  Spanish
Article: 10 Important Facts about the Extended First-Time Homebuyer Credit

 

Expanded Recovery Act Tax Credits Help Homeowners Winterize their Homes, Save Energy; Check Tax Credit Certification Before You Buy, IRS Advises

IR-2009-98, October 29, 2009

 

WASHINGTON — People can now weatherize their homes and be rewarded for their efforts. According to the Internal Revenue Service, homeowners making energy-saving improvements this fall can cut their winter heating bills and lower their 2009 tax bill as well.

The American Recovery and Reinvestment Act (Recovery Act), enacted earlier this year, expanded two home energy tax credits: the nonbusiness energy property credit and the residential energy efficient property credit.  Learn more...

You can also find information on the credit in the following audio and video files:

Home Energy Video:  English | Spanish | ASL
Audio File for Podcast:  English | Spanish
Video: Money in Your Pocket

 

 

Special Tax Break on New Car Purchases Available in States With No Sales Tax

IR-2009-60, June 10, 2009

Podcast: Vehicle Tax Deduction

WASHINGTON —The Internal Revenue Service and Treasury Department today announced that a tax break for the purchase of new motor vehicles is available in states that do not have a state sales tax. Under the American Recovery and Reinvestment Act of 2009, taxpayers who buy a new motor vehicle this year are entitled to deduct state or local sales or excise taxes paid on the purchase.

To qualify for this deduction, the vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010. Taxpayers can claim this special deduction only on their 2009 tax returns to be filed next year. Learn more...

 

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