Home Buyer Tax Credit Extended and Expanded

First Time Homebuyer Tax Credits We've had several phone calls this morning regarding the newly expanded Home Buyer Tax Credit. Of course, buyers who have pending contracts are asking if they will now qualify for an additional tax benefit.

Keep in mind that while both the House and Senate have passed the bill, it still has to be signed off by The President. There are countless blogs, and news articles expelling the pros and cons of our Government using tax dollars as an incentive for buying homes and cars, and time will tell if the programs are ultimately successful. So the purpose of this blog is not to defend or denounce the program but to provide an overview of how it works. Please keep in mind that anytime you're dealing with tax incentives it's always best to check with a professional tax advisor to discuss your situation. Since this Bill has not been finalized, all the information below is subject to change and errors.

First Time Home Buyers

The tax credit is for 10% of the purchase price with a maximum credit of $8000
Applies to contracts written before May 1, 2010 and a closing date before July 1, 2010
Income limits of $75,000 for singles and $125,000 for married couples who file joint returns
Purchase price cannot exceed $800,000
Only applies to primary residences, not second homes or investment properties
You must be at least 18 years old

Long Time Residents

The tax credit is for 10% of the purchase price with a maximum credit of $6500
Applies to contracts written before May 1, 2010 and a closing date before July 1, 2010
Income limits of $125,000 for singles and $225,000 for married couples who file joint returns
Purchase price cannot exceed $800,000
Must have owned your home for 5 consecutive years out of the last 8 years
Only applies to primary residences, not second homes or investment properties
You must be at least 18 years old

For Armed Services members who have been deployed on duty outside the United States, the tax credit has been extended to May 1, 2011 with a closing date before July 1, 2011.

Related Links:

Date: Friday, November, 6th 2009 @ 11:16:24 AM
Views: 1578

This blog entry currently has 23 comments posted.

Alicia Gibson

I agree...anything concerning the govt is liable to change. I PRAY that this does help the economy and not become a "robbing Peter to pay Paul" way of handling the issue. If so, ALL of us, WILL pay the price in the end!

- Alicia Gibson

Top 10 Coolest Real Estate Web 2.0 Sites

I�m just thinking of the pros and cons that it may bring? But, I think the expanded Home Buyer Tax Credit is a good news especially to the first time home buyers.

- Top 10 Coolest Real Estate Web 2.0 Sites

Redding Property Management

It will be interesting to see what the new up to $6500 credit will do for the market and our economy.

- Redding Property Management

Cary NC Homes for Sale

I agree with Alicia. Let's hope this isn't a "Cash for Clunkers" sort of deal in the long term.

Interesting note about members of the armed forces. I don't see too many people mentioning that in other blogs, and it's a nice little item to keep tucked away in the back pocket. It leads me to wonder what kind of home-owner statistics exist for military personnel.

- Shane Pollock

Laguna Real Estate

Sounds great! I love to be the bearer of good news and this is some of the best news for home buyers and sellers in a long time.

- Andy Williams

Logan Utah Real Estate

It's been a couple weeks since the tax credit was put into place, but I haven't really seen an abundance of new buyers flooding the market. Maybe the credit won't be as effective this time around, but we will seen in the spring when things start to heat up. Great post!

- Lisa Udy

susan

I am very hopeful that the President will sign this bill. Is there any updated information on the possibility of him signing?

- susan

Hawaii real estate

This is great news for all of agents. I definitely see it helping with sales for our first time home buyers here in Hawaii.

- Justin Britt

Roseville real estate for sale

Maybe people should be discouraged to undertake such a move, especially in this period of economical instability. Taking on new debts is something that really should be avoided. Of course I agree that when people are determined to do so they should at least go for an established party.

- Roseville real estate for sale

Staten Island Real Estate Agent

The first time home buyers credit has been great for our countries real estate market. We needed a spark as a real estate market, and its starting too pay off. I am glad they extended it.

- Walter Grande

http://expresshomes.info

The first time home buyers credit its a great thing for our countries real estate market. We need a spark as a real estate market and this has helped a little. I am glad they extended it.

- sell my home in Philadelphia

Cache County Homes for Sale

We're clearly seeing a few more listings happen because of the new tax credit, now people who are ready for change are looking to move. The problem is that this just adding more inventory to the market. This is good if these people have smaller homes and are planning on upgrading, because it's the big homes that are having the real trouble moving right now.

- Alan Barker

Real Estate Investment Guy

Two Questions:

1) It will be interesting to see if the tax credit is extended beyond July 2010

2) I wonder how many buyers were influenced heavily by the program?

- Real Estate Investment Guy

Pittsburgh Real Estate

The thing I find interesting is that the credit for new homeowners was so well publicized, but the credit for existing homeowners, less so. I think a lot of existing homeowners don't even know that they are entitled to a credit.

- Pittsburgh Real Estate

International Property Listings

This is good news. I just hope this expanded tax credit will have a good effect.

- International Property Listings

kanishk

Taking on new debts is something that really should be avoided.
kemer

- kanishk

Madison Apartment

I agree....I think the expanded home buyer Tax Credit is a good for first time home buyers.Here you provide nice information about Tax Credit.
Great suggestions. Thanks for writing this piece

- Harrison Rental Properties

Salt Lake Utah Homes, Salt Lake Ut Homes, Salt Lake Utah Homes For Sale

I am looking forward to the positive effect of the expanded home buyer tax credit law. I am sure it would help a lot in real estate market. Keep up posting good articles.

- Realhomesestate

Houston Real Estate

Still waiting to see this extension kick thngs into high gear. My guess is there will be a big rush in April much like there was in November. Although, I'm wondering how many buyers will continue to be lured by this incentive. Seems the incentive needs to be expanded across the board for home buyers and we'd really see an upswing.

- Mark Martin