Homeowners win big with extension and expansion of federal tax credit

Good News! The U.S. House of Representatives today voted to expand the home buyer tax credit. The bill passed the U.S. Senate late yesterday and now will go to President Obama for his signature, where it is expected to be signed this week, according to the California Association of Realtors.

The tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline.

First-time home buyers will continue to receive a tax credit of up to $8,000, while existing homeowners will receive credit up to $6,500.

Existing homeowners will be eligible for the $6,500 if they have lived in their current residences for at least five years.

The bill also will increase the qualifying income limits from $75,000 for single tax filer and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000.

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