Home Buyer Credit Guide

Find Out How the $6500 Home Buyer Tax Credit can Benefit You

Last November, the House and Senate passed an extension of the $8000 first time home buyer tax credit that expired in Nov. 30, 2009. The extension, called the $6500 Home Buyer Tax Credit, allows people who have owned their homes for at least 5 years to purchase a new home to get up to $6,500 of their tax bill.

A lot of buyers have been confounded by the new bill. Why are they doing this? Does this mean that first time buyers can no longer get the $8000 tax credit? Who qualifies for the new tax credit?

All You Need to Know About the $6500 Tax Credit

First things first. Yes, first time home buyers can still get the original $8000 tax credit. This new bill doesn’t change the old one, just expands it.

Those who qualify for the new $6500 tax credit are single taxpayers with an adjusted gross income under $125,000 ($225,000 for joint). Those with greater incomes up to $145 ($245,000 for joint), can get partial credits.

Also, only homes worth $800,000 and below are eligible for the tax credit. All purchases must be secured by April 30, 2010 and closed by June 30, 2010.

So, why is the government doing this? Experts say that the government is hoping that this incentive will lure high-end buyers into purchasing property to create normalcy in the the buying and selling market.

Whatever the case, this is the good opportunity to start investing in real estate. You can’t go wrong with the $6500 Home Buyer Tax Credit.