The Real Estate Bailout and Homebuyers Tax Credit

     It's great to improve our health with eating more fruits and vegetables, but now we've got a stimulus package to improve the health of our economy in the form of this Real Estate Bailout 

      It's a first-time homebuyers tax credit of $8000. It ended at the end of November, 2009 but it seemed to work well although there still were a lot of people who never heard of it and didn't take advantage of it. For this reason Congress has decided to not only extend it, but also to expand on it.

     It not only includes people who have not bought a home in the last three years, but those who have never owned a home. Those folks can receive up to an $8000 tax credit. In addition, it now includes also those who have lived consecutively for five out of the last 8 years in their current home and those people can get up to $6,500 in the form of a tax credit.

     To qualify you must have a binding agreement on a new home by April 30th, 2010 and it must by closed on by June 30th, 2010. The income limits for those interested are $125,000 for singles and $225,000 for married couples with a $20,000 phase out for both.

      This video helps to explain the package and how it works to help move our economy towards recovery.


Loretta - Tax preparation expert said...

This is one of the problems we are facing right now, taxes are getting higher.