Home Buyer Tax Credit
Date Posted:
Friday, November 6 2009 10:26 AM
Today the President will sign the extension into law. It passed both the house and the senate by an overwhelming majority.
So what's all the excitement about…
1. The eligibility pool has gotten bigger – first time home buyers and now move up buyers are eligible. First time homes buyers receive up to $8,000 and move up buyers will receive up to a $6500 tax credit. This is effective for purchases after November 6, 2009.
2. Contracts for new home purchases must be executed by April 30, 2010 – with the closing of that transaction to be prior to July 1, 2010.
3. The new income limit for single filers is $125,000 – that’s up from $75,000. For married filers the cap is $225,000.
4. Only applies to homes purchased for $800,000 or less.
5. And finally they have taken provisions by adding an anti-fraud rule. As the buyer, you must attach documentation of the purchase to the tax return.
The National Association of Realtors believes that 350,000 additional homes were sold this year due to the existing tax credit.
Housing inventory is way down on the market and as of this week unemployment rates have topped 10% for the first time since 1983 and most believe we will see this rate continue for the next 6 months.
While interest rates should remain low and the market should also continue to favor home buyers, time will only tell what round two of the tax credit will mean for the real estate market.
