Today is a great day for all homebuyer’s.  Both the House and the Senate have passed an extension and an expansion of the homebuyer’s tax credit, something that many realtor associations across the nation have advocated for.  President Obama is expected to sign the bill Friday, November 6, 2009.  Some key provisions of the bill are as follows:

1. A tax credit of up to $8,000 is extended for first-home buyers who are in contract to purchase a home by May 1, 2010 and close by July 1. 
2. A tax credit is also available to homebuyers who have owned their current homes for at least five years of up to $6,500.
3. The credit is available for the purchase of principal residences costing up to $800,000 (the prior tax credit did not set a limit on housing price).
4. Income limits for claiming the credit are raised to $125,000 for individuals and $225,000 for couples.

With the extension and expansion of this homebuyer tax credit it is a great time to purchase real estate.  Get out there and work with your local real estate professional and see what is available.  Tour the different unique neighborhoods that this great city has to offer and uncover and claim your very own piece of the American dream.  I hope to see you out there.        

The extension and expansion of the homebuyer tax credit is the pending business in the Senate.  After a long week of negotiation on the credit, an agreement on the scope of both expansion and extension has been reached.  The extension is part of a larger bill that has not yet gone to a vote, however.  A Senate vote on the underlying bill will occur in the Senate during the week of November 1.  The package will then go back to the House.  The house is expected to accept the Senate amendments, vote on the package and send it to the President for signature.  The underlying bill is an extension of unemployment benefits.  Other provisions in the bill include expansion of the net operating loss carryback rules, new requirements for some tax return preparers and noncontroversial provisions that “pay for” these changes.  The agreement on the extension and expansion of the credit is as follows:   

• Credit available for purchases before May 1, 2010.  Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction. 
• Credit remains at $8,000 for first-time purchasers.  No change to definition of first-time purchaser.
• New $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010.  Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years. 
• Income limits are expanded to $125,000 on a single return and $225,000 on a joint return.  Current law $20,000 phase-out retained.
• New anti-fraud limitations are imposed.

The White House has indicated that President Obama will sign the legislation. 

As you may or may not know the first time homebuyer tax credit will come to an end December 1, 2009.  The Internal Revenue Service (IRS) has released the IR–2009–083 reporting that 1.4 million taxpayers have filed or amended their 2008 income tax returns claiming the $8,000 first-time homebuyer tax credit.  Click here to read a great informative article about program and you will also find helpful links to videos and other resources that describe the program in greater detail.  If you are a first-time home buyer now is the time to act.  In order to take advantage of the program you must close on your property before the December 1st expiration date.