Homebuyer Tax Credit Lives On, and Expands

It appears we can take off the “First Time” prefix and and just call it the “Homebuyers Tax Credit.” The government’s housing stimulus plan continues past its original November 30 deadline and actually grows in scope.

The Senate and House have approved a bill extending the $8,000 tax credit and offering move-up buyers a similar $6,500 benefit. President Obama is expected to sign this quickly, since the bill contains unemployment benefit provisions as well.

Here’s the latest:

  • The tax credit would be $8,000 for first-time home buyers and $6,500 for move-up buyers (from December 1, 2009 to April 30, 2010).
  • Move-up buyers will be eligible, as long as they have lived in their principal residence at least 5 years.
  • Contracts through April 30, 2010 will qualify, but closing must occur within 60 days.
  • The income limits have been raised–$125,000 for single return and $225,000 joint return for both first-time and move-up buyers.
  • Cost of the home may not exceed $800,000 to be eligible.
  • Taxpayers will be able to claim the credit on their 2009 income tax return for purchases made in 2010.
  • Home buyers would not have to repay the credit, as long as the home remains their principal residence for 36 months after the purchase date.

More people will qualify for the plan (high income earners and current homeowners). And the tax credit will sunset just as the peak real estate season is ramping up.

So the question remains, does this expansion move your housing timetable up? Sound off in the comments, please.

November 5, 2009 · Filed Under First-Time Buyers, National News, Relocation

Comments

Leave a Reply




CAPTCHA Image
*