Extension and Expansion of the Home Buyer Tax Credit
On Friday, November 6, President Obama signed legislation to extend the $8,000 home buyer tax credit for first-time buyers and add a $6,500 tax credit for repeat buyers who have lived in their home for five of the previous eight years. Income limits are expanded to $125,000 for individuals and $225,000 for joint filers. Households who have binding contracts in place by April 30 will be allowed an additional 60 days to complete their transaction. The legislation places an $800,000 cap on the home sale price.
As always, details are available on my website at
AnyHomes.com.
Wednesday, November 04, 2009
What is Happening with the First Time Homebuyer’s Credit?
As of November 4, 2009, the Senate and House are working on a compromise measure to extend and expand the $8,000 tax credit for homebuyers.
The homebuyers’ credit — scheduled to expire November 30 — is proposed to be extended to cover homes under contract by April 30 that close by June 30, 2010. Additionally, homebuyers who have lived in their prior residence for at least five years could receive a credit of $6,500.
Income limits for eligibility would be raised, allowing many more people qualify for the program. Under the new legislation, individuals with income up to $125,000 a year and couples earning up to $225,000 would be eligible. The current income limits are $75,000 for individuals and $150,000 for couples. Under both the House and Senate versions, smaller amounts are available to people of slightly higher incomes until the credit phases out.
This is in no way a “done deal,” but at least it looks encouraging. I will update as further details are made available. As always, details of the current plan are available on my website at www.AnyHomes.com.
As of November 4, 2009, the Senate and House are working on a compromise measure to extend and expand the $8,000 tax credit for homebuyers.
The homebuyers’ credit — scheduled to expire November 30 — is proposed to be extended to cover homes under contract by April 30 that close by June 30, 2010. Additionally, homebuyers who have lived in their prior residence for at least five years could receive a credit of $6,500.
Income limits for eligibility would be raised, allowing many more people qualify for the program. Under the new legislation, individuals with income up to $125,000 a year and couples earning up to $225,000 would be eligible. The current income limits are $75,000 for individuals and $150,000 for couples. Under both the House and Senate versions, smaller amounts are available to people of slightly higher incomes until the credit phases out.
This is in no way a “done deal,” but at least it looks encouraging. I will update as further details are made available. As always, details of the current plan are available on my website at www.AnyHomes.com.
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