Home Buyer Tax Credit Update
Here’s word from an insider on what’s gaining traction for amendment to a bill the Senate will vote on at 6 pm today to extend unemployment benefits.
The actual amount of the tax credit gets tightened up, but the intent of the new rules is to include first move up home buyers in the mix of beneficiaries.
First time homebuyers, the income level to qualify: $75,000/150,000
For step up buyers the income level to qualify: $125,000/250,000
For step up buyers, they must have been residing in their primary residence for 5 years
The credit is 10% of the sales price, with a maximum of $7290.
The credit runs from Dec. 1, 2009 to April 30, 2010.
For legitimate sales contracts as of April 30, 2010 you have 60 days to close
There is a waiver for military.
Our man on the Hill tells us that the Senate will vote this evening, and that the House will likely vote on Friday, concurring with the Senate and avoiding a conference committee. “After that it goes right to the President for his signature.”
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8 Responses to “Home Buyer Tax Credit Update”
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My grave concern is regarding the income limitation for first-time home buyers.
According to the recent proposal, there is a difference in income limitation between first-time home buyers and step-up buyers. I would request to increase the income limitation for first-time home buyers to $250,000 (for couple) as well. The main reason is that it is the first-time home buyer that will help the economy and that needs more help than existing home owners.
The first-time home buyers should have the same income limitation as the step-up buyers. Why can’t a first-time home buyer, whose income level is same as the step-up buyer not be able to buy the same house? In fact, I would argue that it is better to have a first-time home buyer purchase a home, than a step-up buyer. Having two different income restrictions between first time home buyer and step-up buyer, unfairly discriminates and disadvantages first-time home buyer with income level upto 125,000/250,00.
Let us stop this discrimination against first-time home buyers with higher income levels and put them at the same level as step-up buyers with higher income level.
Home Buyer Tax Credit Extension Gets Tweaks; NOL Lives…
Our near-flung correspondent in Washington, with an ear to the ground on Capitol Hill, provides this…
I just closed on my new home 10/26/09. I lived in my previous home for over six years and upgraded to a much bigger / expensive home. Does anyone know if this step up applies for closings that occured in all of 2009, or if you have to close after 12/01/09 to get it. I know we are still wiaitng for it to be passed, just curious to see if anyone has heard or read anything different.
I also just recently closed on my home, and because I’m in the military, I have lived in 2 different homes in the past 5 years, but I have owned both of them. Will I still qualify for the step-up credit?
I also just sold my first home, (purchased in 2005)and purchased another more expensive home. I am military, and only lived in my previously owned home for 4 years….I guess unless there are provisions for military that we will not qualify….but, boy I sure hope I am wrong.
move up buyers who recently purchased their home should qualify but don’t. It is a shame that the expansion of the bill doesn’t reward purchasers retroactively as they have already provided the stimulus to the industry that this expansion of the credit it looking to provide!
Why did the credit discriminate against people who sold to a relative. My son bought my house using Rural Development funding at 5.25% and 3% down. He paid the appraised value of the house, the same as if some one not related would have paid and financed. BUT he was not eligible for the credit. Did anyone else have this problem?