Questions for the Tax Lady: November 9th, 2009

Check out the following new Questions for the Tax Lady answers and feel free to ask me questions through one of the links below. You can send me an email, direct message or @ reply, and I will do my best to get an answer for you!

Question #1: If my wife and I sell our house this year and buy a new one, can we claim the $8,000 extended homebuyers credit?

Answer: No, you will not be eligible for the $8,000 credit. However, when Congress extended the credit they also created a new $6,500 credit for property owners who have lived in their home for at least five consecutive years. Therefore if you and your wife have lived in your home for five years then you may be able to take advantage of the new, lesser credit.

Question #2: What are the new income limits for the first-time homebuyers credit?

Answer: In the new bill, the income limits for eligible homebuyers were expanded to $125,000 for single buyers and $225,000 for couples. The old credit had $75,000 and $150,000 limits.