Home Buyer Tax Credit extended
Posted by Bob Crain on Thursday, November 5th, 2009 at 6:28pm.There was a bit of good news for the real estate industry and "First Time Buyer" today...
Congress has extended AND expanded the homebuyer tax credit! Both the House and Senate have passed an unemployment insurance bill which included an amendment that exapnds and extends the First Time Buyer Tax Credit. This bill should be on the Presidents desk waiting for his signature in the next day or two. Below I have outlined the features and modifications to the current Home Buyer Tax Credit which expires on November 30th, 2009.
| Feature | Jan 1 - November 30, 2009 | December 1 - Abril 30, 2010 Rules as enacted November 2009 |
| First - Time Buyer Amount of Credit | $8000- $4000 for Married Filing seperately | $8000 $4000 Maried filing sep |
| First Time Buyer Definition of Eligibility | May not have had an interest in a Principal Residence for 3 yrs prior to the purchase | Same |
| Current Homeowner - Amount of Credit | NO Provision | $6500 - |
| Effective Date- Current Owner | No Provision | Date of Enactment |
| Current Homeowner - Definition for Eligibility | NO Provision | Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years |
| When does it end? | No purchases after Nov 30th 2009 unless the President signs the bill | Purchase after Apr 30th, 2010 |
| Biinding Contract Rule | NONE | So long as a written binding |
| Income Limits | $75,000 - Single $150,000 - Married Additional $20,000 phase out | $125,000 - Single $225,000- Married Additional $20,000 phase out |
| Limitation on Cost of Purchase Price | NONE | $800,000 Effective date of enactment |
| Purchase by a Dependent | NONE | Ineligible! Effective date of enactment |
| Anti Fraud Rule | NONE | Purchaser must attach documentation of purchase to tax return. |
As you can see there are several changes from the origional bill. If you quailfy as a First Time Home buyer then the first step you need to take is to get pre approved for a loan.
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Share2 Responses to "Home Buyer Tax Credit extended"
Great post and thanks for getting the word out. I am always suprised that so many home owners don't realize this is available for them. It is up to us to get the word out as soon as possible.
Posted on Sunday, November 29th, 2009 at 10:15 PM.
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Hopefully this new tax credit makes more buyers jump off the fence. Even though there are both good and bad sides to the credit, hopefully it puts lots of money in my pocket as a realtor and I stay busy busy busy the first quarter of the year.
Posted on Monday, November 9th, 2009 at 8:03 PM.