Understanding The First Time Home Buyer Credit
President Barack Obama recently signed legislation that extends a first time home buyer tax credit and extends a smaller tax credit to move-up and other buyers. The extension and expansion of the popular home buyers tax credit gives both new and move-up buyers a tax incentive to buy a home until at least April 30, 2010, longer for military personnel.
The new law extends the existing credit for first-time homebuyers, worth up to $8,000, through April 30, 2010. A new credit of up to $6,500 is available to qualifying existing homeowners who buy a new primary residence (or have one built) by April 30, 2010, if they owned their existing home for five consecutive years over the last eight years. Second homes don’t qualify.
