Breaking News: Homebuyer Tax Credit to be Extended and Expanded
Posted by Dennis Pease on Thursday, November 5th, 2009 at 6:41pm.
Both the House & Senate passed an extension and expansion of the homebuyer tax credit. This could be signed by President Obama as early as tomorrow morning. Below is a summary of the new home buyer tax extension and modifications.
- T he $8,000 tax credit will be extended and available for first-time purchases through April 30, 2010.
- A new $6,500 tax credit will be available for repeat buyers who purchase between December 1, 2009, and April 30, 2010. To qualify for this provision, buyers must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.
- Prospective purchasers with binding contracts in place as of April 30, 2010, will be given until June 30, 2010 to close on their new home.
- Income limits are expanded to $125,000 on a single return and $225,000 on a joint return.
The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.
First-time buyers who are in the process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline. The new legislation increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.
This is going to benifit so many people that have waited until the last minute and thought they were going to miss out on this opportunity. Plus the countless others that have been sitting back and waiting to see what would be passed.
I think it's great that they chose to make a credit available to more home buyers. Please give me a call if you haven't already and let's get started finding your next home!
Dennis Pease is your local RE/MAX Real Estate Broker - (541) 844-9287
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[...]arm, no it’s not the H1N1 flu vaccine. President Obama is set to sign into law the new bill extending and expanding the home buyers tax credit through April 30, 2010. You will need to have an accepted offer by that date and have until June[...]
Posted on Friday, November 6th, 2009 at 12:56 PM.