Friday, November 6, 2009

Tax Credit Extension and Expansion has Passed!

Today, President Obama signed into law the legislation containing the extension and expansion of the tax credit. This legislation also extends unemployment benefits.

The $8,000 first-time homebuyer tax credit will now be available to those who are in a Contract by April 30, 2010 and close by June 30th, 2010.

There is also now a $6,500 tax credit avialable to those buyers who currently own a home and have lived in that home for 5 of the past 8 years.

And the income limits for both credits were expanded to $125,000 for a single buyer and $225,000 for couples allowing more people to qualify. However, qualifying home prices were capped at $800,000.

NAR economists estimate that approximately 2 million people will take advantage of the tax credit this year.

Sources: NAR and The Associated Press, Julie Hirschfeld Davis (11/06/2009)

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