Home tax credit almost certain to be extended and expanded in US
First time home buyers in San Diego get $8,000, others up to $6,500
US Senators yesterday voted yesterday to approve bill HR 3548 which was primarily intended to extend unemployment benefits. However, as with most bills, a variety of other legislation was bundled in the bill including an anticipated extension of the first time buyer tax credit and extensions of the credit to certain, existing homeowners as well.
Although President Obama has line item veto rights on the tax credit, official positions of the White House have generally been supportive and industry lobbyists have been working hard to press forwarding on the extension. The House may approve the bill as soon as today.
Ergo, this is fully expected by most experts to become law very soon.
First time buyers
The extension of the tax credit for first time buyers (i.e. those who haven’t owned a home in at least three years) is fairly straightforward.
Instead of a November 30 deadline for real estate closings, the new law would allow for purchase agreements as late as April 30, 2010 and closings as late as June 30, 2010 for the maximum $8,000 credit.
Maximum income limitations have been expanded making the program available to even more buyers. Individuals may now make up to $125,000 and married couples may have income of up to $225,000. (Higher income individuals may receive reduced credits.)
Existing home owners
As for existing home owners that have been in their home for at least five years of the last eight years, they will be eligible for a $6,500 tax credit with a maximum home price of $800,000. This provision is intended to spur home upgrade purchasing for those who are still likely to have some equity in their homes.
Military personnel from San Diego
Members of the military who have served overseas for at least 90 days between January 1, 2009 and May 1, 2010 will receive one year extensions on the credit deadlines.
Tax payers who complete a transaction in 2010 but before their 2009 tax filing deadline will have the option to apply the credit to their 2009 taxes instead of their 2010 taxes.
For more info: Brian Flock may be contacted at www.flockdreamhomes.com , brian@flockdreamhomes.com , or at phone (619) 793-5224