There has been quite a bit of confusion as to what the ‘First TIme Home Buyer Tax Credit Extension’ is going to
Because every post is better with a photo.
include/exclude, just like when it was introduced to begin with. This is tentative since Congress is expected to make their vote by Friday and would still need the President’s signature. So, here are some of the notebale changes according to the New York Times…
- The deadline will be extended from November 30th to April 30th
- Credit will no longer be limited to first-time buyers; people who have owned a home for at least five years could get a $6,500 credit on a new residence.
- To prevent fraud new measure will require applicants to be at least 18. Homes cannot be acquired from relatives, and taxpayers must submit a settlement statement as proof of purchase
- The new legislation gives income limits for individuals with income up to $125,000 a year and couples earning up to $225,000 would be eligible. (The current income limits are $75,000 for individuals and $150,000 for couples)
This bill was attached to another that lengthens unemployment benefits, now it is a package deal.
*The following is just my opinion based on talking with other Realtors throughout the country* I believe the way this is set up is to extend it for a short time with the possibility of re-extending it for a smaller amount. In essence phasing out the tax credit all together, so long as it is still effective.
