U.S. Tax Credit Extended, Expanded!

President Obama signed legislation on Friday that extends and expands the U.S. tax credit for homebuyers.Earlier this week, both the Senate and the House overwhelmingly passed the Dodd-Lieberman-Isakson Amendment to extend and expand the first-time homebuyer tax credit that was set to expire Nov. 30. The amendment is to a bill extending unemployment benefits.

November 6, 2009

Read a Nov. 6 Associated Press news article with the latest details.

This actions come after Congress voted last week to extend higher loan limits on federally backed mortgages. Read more.

Tax credit plan
According to the Senate Committee on Banking, Housing & Urban Affairs Web site, the homebuyer tax credit expansion measure includes these provisions:

• Extends the $8,000 first time Homebuyers Tax Credit and creates a new $6,500 tax credit for homeowners buying a new home from December 1, 2009 to April 30, 2010.
• Homebuyers with contracts as of April 30 qualify for the credit so long as they close the transaction within 60 days.
• Available to homebuyers with incomes of up to $125,000 for a single return or $225,000 for a joint return.
• Not available for homes costing over $800,000.
• Homebuyers who already own a home are only eligible if the home they are leaving has been used as a principal residence for five consecutive years in the last eight.
• Provides authority to the IRS to provide greater oversight while processing the return and requires that the taxpayer claiming the credit be 18 or older.
• Members of the military, military intelligence and foreign service who are on qualified extended official duty are not subject to the recapture fee and individuals who have been deployed overseas for 90 days or more in 2008 or 2009 can claim the credit through April 30, 2011.

“Realtors® appreciate the swift action by Congress to extend the homebuyer tax credit and expand it to some current homeowners,” NAR President Charles McMillan says.

“The substantial rise in home sales we’ve seen over the past few months proves that the tax credit is working and is being used by buyers who were waiting for the right opportunity to get into the market,” McMillan says. “This important incentive is helping to stabilize the housing market, stimulate the economy and create new jobs in communities all across our great nation.  Extending and expanding the home buyer tax credit will enable even more families to take advantage of current low interest rates and affordable prices to invest in their future through homeownership.” 

© 2009 RE/MAX International, Inc.

Brought to you by 

Will Schirmer, RE/MAX Legacy, 215-822-4884 or 215-822-8200.