Today, President Obama is expected to sign the 2010 homebuyer tax credit extension, which will extend the current $8,000 tax credit for married couples on binding contracts written by April 30, 2010, and closed by July 1, 2010.
Current homeowners selling their current home and buying another principal residence can receive up to $6,500 in tax credit, so long as they used their current home as a principal residents consecutively for 5 of the previous 8 years..
There are income and purchase price limits to eligibility, so please review this link from the National Association of REALTORS Government Affairs Division for details. As always, you're always welcome contact me for further information.
Showing posts with label homebuyer tax credit Dallas Home. Show all posts
Showing posts with label homebuyer tax credit Dallas Home. Show all posts
Friday, November 6, 2009
Tuesday, November 3, 2009
Still No Vote on Homebuyer Tax Credit Extension
Contrary to what you might have heard through the grapevine, as of this writing, Congress still has not voted on proposals to extend or expand the tax credit for homebuyers.
“I think the first-time home-buyer credit is a great example of funding that’s helped to stabilize the housing market and should be extended,” Jared Bernstein, chief economist to Vice President Joe Biden, said on Bloomberg television. Treasury Secretary Timothy Geithner gave his support yesterday.
Lawmakers announced plans last week to attach the tax-credit proposal to a pending bill on the unemployment benefits. The $8,000 tax credit, enacted earlier this year as part of the $787 billion economic stimulus package, is set to expire at the end of November.
The proposal would extend the credit until April 30 and expand it to allow higher-income Americans and some who already own homes to qualify for the break.
Homebuyers who have lived in their prior residences for at least five years may receive a credit of $6,500 under the plan, said Senate Finance Committee Chairman Max Baucus. Also, couples earning as much as $225,000 and individuals as much as $125,000 would qualify for the extended break, Baucus said. That’s up from a $75,000 limit for individuals and $150,000 for couples.
“The success of the American economy is closely tied to the success of the housing market; by helping to stabilize the housing market, the homebuyer tax credit has helped to shore up the economy as it begins to recover,” said Baucus, a Montana Democrat. “This would enable an even greater number of potential homebuyers to take the credit.”
Lawmakers said they want to prevent home sales from slipping as the economy struggles to recover from the worst drop in home prices since the Great Depression.
More than 1.2 million borrowers have claimed $8.5 billion of the $13.6 billion set aside for the homebuyer tax credits this year, according to the Treasury Department. The Obama administration, in endorsing the extension yesterday, said the credit has helped stabilize the nation’s housing market.
The tax break “brought new families into the housing market and contributed to three consecutive months of rising home prices,” Geithner said in a statement.
The measure would require those receiving the tax break to remain in their new homes for three years and they would have to repay the credit if they don’t.
Those buying homes worth more than $800,000 wouldn’t be eligible for the credit, said Baucus. Lawmakers also said they won’t extend the break beyond the new April 30 deadline.
“The American people should understand this -- and the affected industries -- this is the last extension,” said Senator Johnny Isakson, a Georgia Republican who cosponsored the plan. “Tax credits like this only work by creating the sense of urgency to take advantage of them.”
“I think the first-time home-buyer credit is a great example of funding that’s helped to stabilize the housing market and should be extended,” Jared Bernstein, chief economist to Vice President Joe Biden, said on Bloomberg television. Treasury Secretary Timothy Geithner gave his support yesterday.
Lawmakers announced plans last week to attach the tax-credit proposal to a pending bill on the unemployment benefits. The $8,000 tax credit, enacted earlier this year as part of the $787 billion economic stimulus package, is set to expire at the end of November.
The proposal would extend the credit until April 30 and expand it to allow higher-income Americans and some who already own homes to qualify for the break.
Homebuyers who have lived in their prior residences for at least five years may receive a credit of $6,500 under the plan, said Senate Finance Committee Chairman Max Baucus. Also, couples earning as much as $225,000 and individuals as much as $125,000 would qualify for the extended break, Baucus said. That’s up from a $75,000 limit for individuals and $150,000 for couples.
“The success of the American economy is closely tied to the success of the housing market; by helping to stabilize the housing market, the homebuyer tax credit has helped to shore up the economy as it begins to recover,” said Baucus, a Montana Democrat. “This would enable an even greater number of potential homebuyers to take the credit.”
Lawmakers said they want to prevent home sales from slipping as the economy struggles to recover from the worst drop in home prices since the Great Depression.
More than 1.2 million borrowers have claimed $8.5 billion of the $13.6 billion set aside for the homebuyer tax credits this year, according to the Treasury Department. The Obama administration, in endorsing the extension yesterday, said the credit has helped stabilize the nation’s housing market.
The tax break “brought new families into the housing market and contributed to three consecutive months of rising home prices,” Geithner said in a statement.
The measure would require those receiving the tax break to remain in their new homes for three years and they would have to repay the credit if they don’t.
Those buying homes worth more than $800,000 wouldn’t be eligible for the credit, said Baucus. Lawmakers also said they won’t extend the break beyond the new April 30 deadline.
“The American people should understand this -- and the affected industries -- this is the last extension,” said Senator Johnny Isakson, a Georgia Republican who cosponsored the plan. “Tax credits like this only work by creating the sense of urgency to take advantage of them.”
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