The House and Senate recently passed the Worker, Homeownership, and Business Assistance Act of 2009. It is anticipated that President Obama will sign the bill shortly. The bill, among other items, extends and expands the first-time homebuyer tax credit.

Under the bill, first-time homebuyers may receive up to an $8,000 tax credit. In addition, existing homeowners who have maintained the same principal residence for any five consecutive year period during the last eight year period ending on the date of the purchase of a subsequent principal residence may be eligible for a tax credit up to $6,500.

Under the bill, the credit is extended to apply to a principal residence purchased before May 1, 2010. The credit also applies to the purchase of a principal residence before July 1, 2010 by any taxpayer who enters into a written binding contract before May 1, 2010, to close on the purchase of a principal residence before July 1, 2010. The bill also increased the income limitations for purchasers.

If you would like to discuss the Homebuyer Tax Credit or need assistance in amending your 2008 tax return to claim the credit, feel free to give us a call.

Advanced Tax Solutions CPA, PC
303-753-6040

11-06-09

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