Housing Tax Credit & Expansion is Approved.

In an effort to get housing moving again, Congress has passed and President Obama has signed a bill to extend the $8,000 First-Time Home buyer Tax Credit, and expand a $6,500 Tax Credit For Current Home Owners.

$8,000 First-Time Home buyer Tax Credit Extension

Under this program qualified first-time home buyers may receive a tax credit up to $8,000.

• Eligible for homes with purchase agreements signed by April 30, 2010, and closed by June 30, 2010.
• Available to first-time home buyers who have not owned a home during the past three years.
• Credit amount up to 10% of the home's value, not to exceed 8,000.
• Buyers qualified for full tax credit are single taxpayers with incomes up to  $125,000 and joint filers with incomes up to $225,000.

$6,500 Tax Credit For Current Home Owners

Under this program the bill provides a tax credit to current home owners who purchase a new primary residence.

• Eligible for homes with  purchase agreements written by April 30, 2010, and close between November 6, 2009 and June 30, 2010.
• Qualified home buyers must have lived in their current homes for five consecutive years of the last 8 years.
• Maximum purchase price of the home is $800,000.
• Single tax filers who earn up to $125,000 are eligible for the total credit amount.  Partial credit can be granted for incomes up to $145,000.
• Joint filers who earn up to $225,000 are eligible for the total credit amount.  Partial credit can be granted for incomes up to $245,000.

Some say that the First-Time Home buyer that was passed earlier in the year was widely successful, others claim that the program attracted people that were going to buy a new home even with out the credit.

The Tax Credit for Current Home Owners, may be the better of the two programs.  It may reduce the log jam of people that want to move, but, can not sell their homes.  I'm talking about people that need to trade up, or trade down.  I my market area I have met people that want the suburban home, but now own that condo, the one they can not sell, but, need to sell to make the deal work.  Also, older folks who have that suburban home and want to trade to a smaller place, but...can't sell their home to make the move.

For more information, you may want to consider talking to your tax professional.

 

 

Comments

[Real estate Philippines]

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Deirdre G