STILLWATER, Okla. – December 7, 2009 – (RealEstateRama) — If you are a looking to purchase a home and qualify for the first-time homebuyer tax credit, you are in luck – the tax credit has been extended.
Eileen St. Pierre, Oklahoma State University Cooperative Extension personal finance specialist, said the extension is part of a $24 billion economic stimulus bill that will extend the $8,000 tax credit from Nov. 30, 2009 to April 30, 2010 for homebuyers who are purchasing their first home. The program is also expanding to offer a $6,500 credit to homeowners who have lived in their current home for at least five years and are seeking to relocate.
“The period for eligibility for the tax credit is for a home purchased after Nov. 6 of this year and before May 1, 2010,” St. Pierre said. “Home purchases that have a binding sales contract signed by April 30, 2010 will qualify if the closing occurs by June 30, 2010.”
Those who are eligible for the $8,000 tax credit include homebuyers who have not owned a principal residence during the three-year period prior to the purchase. Repeat buyers who have been residing in their principal residence for five consecutive years (out of the last eight) and are purchasing a home to be their principal residence may be eligible for up to a $6,500 tax credit. All U.S. citizens who file taxes are eligible to participate in the program.
St. Pierre said all homes with a purchase price under $800,000 qualify, including townhomes and condominiums. Again, the home must be used as the principal residence. Rental homes and vacation property do not qualify.
“This is a refundable tax credit,” she said. “This means that if the amount of income taxes owed is less than the amount of the credit, the homeowners will get a check for the difference when they file their tax return. It also doesn’t have to be repaid unless the homeowners sell or stop using the home as their main residence within three years of purchase.”
Income limits do apply. For more detailed information, you can visit the website www.federalhousingtaxcredit.com or contact your local county Extension office.
Oklahoma State University, U.S. Department of Agriculture, State and Local Governments Cooperating: The Oklahoma Cooperative Extension Service offers its programs to all eligible persons regardless of race, color, national origin, religion, gender, age, disability, or status as a veteran, and is an equal opportunity employer.
Katie L. Reim
Agricultural Communications Services
140 Agriculture North
Oklahoma State University
Stillwater, OK 74078
katie.reim (at) okstate (dot) edu