Oct 29 2009
Will The First-Time Buyer Tax Credit Be Renewed?
It appears that the first-time buyer tax credit might be renewed with some significant changes at least until April 2010! Senate Banking Committee Chairman, Chris Dodd (D-Connecticut) has said that Senate Democrats have agreed to extend the first-time home buyer tax credit. Here are some of the changes being considered in the latest version:
- The program would be extended to home contracts signed, not closed, by April 30th. Home buyers then would have another 60 days to close the sale.
- The credit would be expanded to include “step-up” buyers, who’ve lived in their current home for at least five years.
- The credit amount would be cut to $7,290 from the current $8,000.
- Income limits for first-time buyers would remain the same ($75,000 for individuals; $150, for couples).
- Income limits for step-up buyers would be $125,000 for individuals and $250,000 for couples.
But keep in mind that this is not yet a final bill and changes to the proposal could occur. The tax credit has had such a major impact on housing sales this year, if you want to see the credit expanded you should contact your Congressional representatives and tell them so! To learn more see this article from Bloomberg News.
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