President Obama extended the $8,000 tax credit last week, allowing it to remain in effect through next spring. Based on several conversations and questions I’ve had and heard since then, there seems to be some confusion about the tax credit’s details.
The Wall Street Journal has a great primer by Laura Sanders on the subject. Here’s the upshot:
– First-time home buyers will continue to get a credit of 10% of the purchase price, or an $8,000 max;
– Those who do claim the credit have to stay in their home for at least three consecutive years (skip the flip);
– To be eligible for the credit, buyers have to be in contract no later than May 1, 2010 and close their sale no later than July 1, 2010;
– For purchases made after November 6, 2009, no credit is available for any home costing more than $800,000;
– There’s now a tax credit for repeat buyers, as well as first-time home buyers.
Again, check out the full article for more very helpful details.