In an update to the update, I wanted to pass this along: part of the bill passed last week which extended the first-time homebuyer’s credit through June of 2010, ALSO expanded the types of homebuyers to include “long-term residents of the same principal residence”.
This “long-term resident” is defined as a homeowner who has owned and lived in the same principal residence for five consecutive years within the eight year period ending with the purchase of the new home.
New limits are in effect, as well – originally this credit (maximum $8,000 for first-timers, $6,500 for long-timer homeowners) phased out between $75,000 and $95,000 MAGI for a single individual or between $150,00 and $170,000 for married filing jointly (MFJ). The new phaseouts begin at $125,000 for singles and $225,000 for MFJ. There is a further limitation in that the home must cost no more than $800,000 (although this is solely effective for homes purchased after November 6, 2009.
For more information, you can view the video below:
View the First-Time Homebuyer Credit video
Prepared by Forefield Inc. Copyright 2009 Forefield Inc.
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I can learn from you, you can learn from me - please leave your comments and links!Jim Blankenship, CFP®, EA, is an expert in personal retirement, IRAs, and tax issues, with more than 25 years of experience in the industry. Read more from this author
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