Tax Credit Party Continues
Posted On: November 5th, 2009 by James Posted In: Government Actions
The US Senate, and now the house have prepared a new bill that is being sent to the President today for his signature. This new bill is mainly one that will extend unemployment benefits for another 20 weeks, but what has been tacked on to this is an extension of our $8,000.00 First time home buyers tax credit. So now those who are in the middle of transactions and hoping to close before thanksgiving just got a little breathing room!!
I really like the way they have improved the structure of this credit as well. The new version extends the credit to those UNDER CONTRACT by April 30th, and then you have 60 days to close. So you need to be under contract (mutual acceptance on a purchase) by the 30th of April, and the transaction must be closed by June 30th.
There have also been rumors about an additional tax credit for NON first time home buyers. But since I haven’t seen anything, I will wait until it becomes law and let my CPA tell me how this will work. My understanding is that there will be a $6,500 credit for existing home owners who have lived in their homes for at least 5 years, and are buying a new primary residence. This credit also has the same expiration date as the First time buyer tax credit. Under contract by April 30th, and closed escrow by June 30.
More info can be found at this link: CLICK HERE
Stay tuned.
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