On Wednesday the Senate voted, 98-0, to extend and expand the current first time home-buyer tax credit that is scheduled to expire at the end of November. The house voted today 403-12 in favor.
Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6500. Anyone who has not owned a home in the last 3 years (including first time home-buyers) would still get up to $8000. This tax credit is only good for primary residences costing less than $800,000. There is a phase out for individuals with incomes of greater than $125,000 and $225,000 for joint filers.
To qualify one must sign a purchase agreement by April 20, 2010 and close by June 30, 2010. As always, consult your tax professional before making any tax related decisions.