NEW Home Buying Tax Credit for ALL
NEW Home Buying Tax Credit for ALL
November 11, 2009
Home buyers have been anxiously awaiting word on an extension of the very popular First Time Home Buyer $8000 tax credit. On Friday, the Congress had struck a deal to expand on this program. President Obama signed it into law on Friday morning.
Many Realtors are seeing this tax credit as the main motivation of home sales this year. In 2008, there was a “tax credit” that was really a no interest loan to First Time Buyers. This year that loan was changed to a true tax credit of $8000 for these buyers.
The big news on the new bill – You do not have to be a First Time Buyer to get a tax benefit! The credit would extend to ANY buyer who has lived in their home for 5 consecutive years of the past 8 years, as well as the First Time Home Buyer.
Here is the summary of the new law:
Extension of the tax credit through the end of June 2010, as long as it is under contract by the end of April.
The credit for repeat buyers would be $6,500. First Time Buyers would remain $8000.
Expanded income limits for individuals making up to $125,000 a year and couples earning up to $225,000 per year.
Maximum purchase price of $800,000.
All the buyers rushing to get into that home by the November 30th deadline are breathing a sigh of relief. I believe the additional feature for people who already own their homes is going to certainly help home sales in the mid-priced price points.
Ed Daniels of Re/max Executive Realty is a Holliston native and full time Realtor. Contact him for more details on this brand new tax credit at 508-341-7880 or Ed@MAhome.com.