Homebuyer Tax Credit Extended

President Obama and Congress have extended the first-time buyer tax credit until April 30, 2010. Qualified first-time homebuyers will receive a tax credit of $8,000, and the plan has been expanded to homeowners who have lived in their existing home for five years and are looking to relocate. These existing homeowners can receive a tax credit of $6,500. Unfortunately, homebuyers need to earn less than $125,000 ($225,000 for married couples) to get the full value of the tax credit. The tax credit phases out completely for those who earn over $145,000 ($245,000 for couples). In addition, the purchase price of the home has to be less than $800,000. Consequently, the tax credit will only benefit a very small percentage of potential new Manhattan homebuyers.  It is still better than nothing.