Extension of Tax Credit and New Program

November 5th, 2009

Great news coming out of Washington DC for residential purchasers!

First-time home buyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the government extended and expanded the tax credit to include many purchasers who already own homes.
Buyers who have owned their current homes at least five (5) years would be eligible for tax credits of up to $6,500. First-time home buyers — or anyone who hasn’t owned a home in the last three (3) years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.

Keep in mind that the credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. Also, the credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000. For those in the military, the credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.

So purchasers can now breath a bit easier at least until April 30, 2010 if you want to qualify for the credit.

While you are breathing a little easier contact me if you have any questions.

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