Woot! Senate Extends and Expands Homebuyer Tax Credit

4 11 2009

The Senate just voted a unanimous 98-0 toward extending and expanding the tax credit. What sounds like a windfall amount of $45 billion, it will cover the home buyer credit, tax relief for companies losing money (how do I qualify as a Realtor?!), and also extending jobless benefits to the unemployed. I’m not clear, however, on how much will be allocated to each, or if the $45 billion is just for the home buyer credit, or what kind of loss is covered in the business tax relief. My main purpose in writing this is to acknowledge that the home buyer credit seems to be moving forward. The next steps for the bill is the House then the President.

So… what exactly does this mean to home buyers?

craftsman houseWell the credit amount remains at $8,000, and will be extended until April 30th of 2010, and allow those with higher incomes – individuals and couples earning $125k and $225k respectively to get the credit as well. In addition, some current homeowners will qualify for a tax credit too. For those who have currently lived in their homes 5 yrs or more, $6,500 is available to them.

There are some loopholes to this however. Those who sell or no longer use the home as a primary residence in three years from closing will have to repay the credit. In addition, those who purchase a home at a price of $800,000 or more are not eligible either.

Like it or not, it is here to run it’s course… well, almost.

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