American Recovery and Reinvestment Act

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    Thursday, April 24 2014 @ 12:26 AM CDT

    First Time Homebuyer Credit

    The original provision – a tax deduction of up to $8,000 – applied only to people buying their first homes between April 8, 2008, and December 1, 2009. The cut-off date has now been extended to April 30, 2010.  Also, a similar credit – up to $6,500 – is now available to current homeowners who buy new principal residences in the same time frame. However, those homeowners must have lived in their previous homes for a five-year consecutive period in the previous eight years before the date they buy the new home.

    For either credit:

    • New home can cost no more than $800,000
    • Individual buyers must have income of $125,000 or less
    • Joint tax-filers must have combined income of $225,000 or less

    Visit the IRS website for more information.