Tim White

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Hart

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New Home Buyer Tax Credit Approved by House & Senate

The Senate voted 98-0 on Wednesday and yesterday the House voted 403-12 on legislation that includes the extension and expansion of the home buyer's tax credit. The President is expected to sign the legislation, perhaps as early as today.

This is great news if you have been thinking about buying, or selling your home. Here are the highlights of the new legislation:

Current Credit:
The current credit is for home buyers who have not owned a home in the last three years. These buyers are eligible for a credit of 10% of the purchase price, up to $8000. Income limits $75,000 - Single, $150,000 - Married.
This credit expires Nov 30, 2009
New Version:
The existing credit for first time home buyers stays the same (up to $8000, haven't owned a home in the last three years.) The credit has been extended to April 30, 2010, and allows for a 60 day closing window if a binding contract is executed prior to April 30th.

The expansion is the biggest news of the legislation. Current homeowners looking to buy their next home are now eligible for a tax credit of up to $6500. To qualify, homeowners must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.

Income limits have also been increased. The new limits are $125,000 - single and $225,000 - married.

The legislation limits the purchase price of the home to $800,000.

What does this all mean to you?

This means more people than ever will be eligible for the tax credit. What a great incentive to buy a home! If you're thinking about buying a home, you get money in your pocket. If you're thinking about selling your home, you will now have a flood of buyers out there looking to take advantage of the tax credit.

 

Posted by Tim White @ 11:36 AM on 11/06/2009
Tags: Tax Credit