As many of you heard a few days ago, in email after email that I saw...it had been reported that the first time home buyer tax credit had been modified and extended. Unfortunately, this is another example of the media educating in sound bites. Although, some of the information was true, the actual comment that the extension had been passed, was erroneous. As of this morning, the bill was still in the Senate awaiting another vote and another again on Thursday. The House will likely vote and approve it quickly on Friday. After we have the approval from both chambers, it will be sent to the President.
Key components of the current language are as follows...
$8,000 tax credit for first-time homebuyers
$6,500 tax credit for “move-up” buyers who have lived in their current principal residence for 5 or more years
Increase income eligibility limits to $125,000 (single) and $225,000 (Joint)
Credit expires April 30, 2010, but contains a clause allowing those in contracts as of April 30th an extra 60 days to complete the transaction
Tax credit can’t be used towards a home with a value of more than $800,000
Stay tuned as I update you on the latest!
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3 comments:
I wonder if the tax credit for current home owners who are purchasing a new home will be retroactive? I'm scheduled to close on a new house Nov 23rd and it's going to sting a little to miss out on the credit.
I don't see any reason why it wouldn't be retroactive, it is actually an extension so you shouldn't miss out. I, too, have buyers who are cutting it close and we are counting on this to make sure they get the $8,000 or whatever amount of credit is due them.
Home Buyer Tax Credit Extension Votes Still Underway!
Thanks for sharing
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