Real NEastate: Tax credit update

President Obama has signed a new Homebuyer Federal Tax Credit. And it’s not just for first-time buyers anymore.

The First-time Buyer Tax Credit of up to $8,000 has been extended, and qualifying income limits have been raised to $125,000 for single taxpayers and $250,000 for joint taxpayers, up from $75,000 and $150,000, respectively.

In addition, beginning Nov. 7, 2009, there’s a new credit of up to $6,500 to qualifying existing homeowners who have resided in their homes for five out of the last eight years, and are buying a new home up to $800,000.

Agreements of sale need to be signed by April 30, 2010 and settled by June 30, 2010.

Here is a comparison chart from the National Association of Realtors.

Stacey McCarthy is a real estate agent with the McCarthy Group of Keller Williams. Her Real NEastate column appears every Wednesday on NEastPhilly.com. See others here. Read other NEast Philly columns here.

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