Tax Credit for Qualifying Homebuyers

New law extends and expands the homebuyer tax credit

The Worker, Homeownership and Business Assistance Act of 2009 extends the federal tax credit for first-time homebuyers and expands it to certain repeat homebuyers. You must purchase a qualifying principal residence before May 1, 2010 and close before July 1, 2010 to be eligible for the homebuyer tax credit.

Learn

How To

Get tips about how to qualify for and claim the tax credit.

Tools

Use the Savings Estimator to estimate the True Cost of your new home.

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Homebuyer Savings Movie

New Homebuyer Profile: Amy

Amy entered into a contract to buy a new home for $180,000 on November 10, 2009. Closing is scheduled for January 5, 2010. Amy is a qualified first-time homebuyer under the Worker, Homeownership and Business Assistance Act of 2009. Amy can claim the Homebuyer Tax Credit by filing Form 5405 and the required supporting documents with her federal tax return.

Amy's First Home:

	$180,000	First-Home Purchase Price
–	$8,000	WHBAA Tax Credit*
=	$172,000	True Cost after tax credit

* Under WHBAA, the First-Time Homebuyer Tax Credit is 10% of the purchase price of the home, up to a maximum of $8,000. The tax credit is not available if the purchase price exceeds $800,000.

This profile is provided for illustrative purposes only. It is not intended to provide actual tax savings or financial advice. Consult your tax advisor.

To estimate the True Cost of your new home, click here.

The information contained herein is drawn from sources that are believed to be reliable, but it cannot be guaranteed as to completeness or accuracy. The content is not intended to be, and should not be relied upon as, tax, legal, or financial planning advice. Consult your tax advisor for specific advice.