Both houses of Congress have agreed on a bill that will extend and expand the homebuyer tax credit.
Main features of the bill:
* $8,000 tax credit to first-time homebuyers.
* $6,500 tax credit to buyers who are homeowners that have lived in their current home the last five years.
* Purchases must be under contract before April 30, 2010.
* Closing must be before June 30, 2010.
* Adjusted Gross Income limits - Single filer: $125,000 ; Married filing jointly: $225,000
It is expected to be signed into law by President Obama.
For questions about this or other real estate matters in Katy, feel free to e-mail me at CreedonRealty@aol.com.
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Comments
Who can take advantage of
Who can take advantage of this section?
* $6,500 tax credit to buyers who are homeowners that have lived in their current home the last five years.
* Purchases must be under contract before April 30, 2010.
* Closing must be before June 30, 2010.
There are quite a few of us who meet this requirement and I would really enjoy a tax credit for something I already own, kind of like getting back some of my own money for a change.
Existing Homeowner
Ross,
Good question. As expected, many existing homeowners are wondering if they can get the credit, too. It is my understanding that since the bill was signed into law today (11/06/09), it means that any closing that takes place after today may entitle the homebuyer to receive the $6,500 credit as long as they lived in their previous residence for five consecutive years out of the last eight (and meet the other requirements). Since the purpose of the credit is to stimulate new economic activity, it's not retroactive to those that bought a house, say five years ago, and are not planning on selling...and I agree it would be nice.
Katy Real Estate
A tax credit that looks like it will help!
This looks like a good short term way to help move some homes.
Hey Ross ... blink blink
You may want to re-read this article. People who already own a Home and lived in it for the last 5 years could now buy another home and receive the credit on that second home. This is what I read. I have been in my home for 25 years. The note is paid off several years ago. I was looking at buying another home before this crap begin. Now I hope I can start again! This is what i understand the credit is for.
Washbasin, I wonder if you
Washbasin,
I wonder if you and I can partner on a house and EACH of us can take the credit on our individual tax returns? Might you buy the house along with one of your adult children who is looking for a first time purchase? Or maybe they want to go in on your "second home?" Now that could be nice if that plays out. Mercy, I got three adult children who might one to get in on this one. Brothers and sisters buying property together, all first time home buyers each with their own 1040, does that work?
How to get the credit if you're not a first tme homebuyer.
The $6,500 credit is available for a 'primary or principal' residence only. The new purchase must be under contract no later than April 30, 2010 and closing must occur no later than June 30, 2010. The credit is not available for a 'second' or investment property. When the authoritative pronouncements come out, specifically from the IRS, I'll pass those on to my readers and clients. I have worked with many buyers in 2009 who have benefited from the original credit and this extension and expansion of it should help keep the economic train moving.
Katy Real Estate
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