As anticipated, the $8,000 tax credit for first-time homebuyers has been extended. Set to expire November 30 of this year, first-time homebuyers now have until May 1, 2010 to sign a sales contract on a new home. Income eligibility limits have also been increased from $75,000 to $125,000 for singles and from $150,00 to $225,000 for married couples.
Also, current homeowners may be eligible for a $6,500 tax credit when they purchase a new home, as long as they've lived in their current home for five consecutive years over the past eight. The new purchase must be a primary residence, and it must cost less than $800,000.
This is great news for the housing market and potential homebuyers. The $10.8 billion price tag on the extension/expansion is no small figure, but with pundits anticipating an additional 200,000 to 400,000 home sales by the end of the year due to the extension, one can be forgiven for calling the cost an acceptable one.
Who has taken advantage of the tax credit? Who plans to before it expires?