| President Obama signed into law November 6th the | | | | prior to purchase. Vacation homes are ineligible. |
| extension and expansion of the 1st Time Home Buyer | | | | Added restrictions include the tax credit may not be |
| Tax Credit after congress voted overwhelming to | | | | used to buy a home for more than $800,000, |
| approve it on the 5th, including a Senate vote of 98-0. | | | | dependents (children under 18) are no longer eligible as |
| It is known as the Worker, Home Ownership and | | | | purchasers and as an anti-fraud measure, all buyers |
| Business Assistance Act of 2009. | | | | seeking the credit must include purchase |
| To help inform those of you potentially eligible for this | | | | documentation on their tax returns. |
| generous tax credit that is essentially a gift from Uncle | | | | Properties that close after today, the day of |
| Sam as it requires not repayment, here are some | | | | enactment, are eligible. For a more detailed run down |
| associated parameters. | | | | of this legislation, here's a link to the Internal Revenue |
| Expiration date for the credit moves from needing to | | | | Service site on it: |
| close by November 30th to needing to get under | | | | Rep. Jim McDermott, D-Washington: |
| contract by April 30th, 2010 and close by July 1st, 2010. | | | | "The home buyers' credit has helped pave the way |
| It is an $8,000 maximum credit for individual tax payers | | | | for stabilization in the housing market and contributed |
| & married couples, up to $4,000 for married | | | | to three consecutive months of rising home prices. Its |
| couples filing separately. | | | | extension will continue to make home ownership more |
| A new feature of the tax credit is that home buyers | | | | affordable and bring confidence to a housing market |
| residing in the current residence for any five | | | | and economy that remain fragile." |
| consecutive 5 year period during the 8-year period | | | | Charles McMillan, president of the National Association |
| ending on the date of the purchase of a subsequent | | | | of Realtors: |
| principal residence are now also eligible, but for a | | | | "The substantial rise in home sales we've seen over |
| slightly smaller credit: married couples for $6,500, | | | | the past few months proves that the tax credit is |
| $3,200 for tax payers filing separately. | | | | working and is being used by buyers who were |
| The income limits for both tax credits have been | | | | waiting for the right opportunity to get into the market. |
| raised to $125,000 (increased from the former | | | | This important incentive is helping to stabilize the |
| $75,000) for individual filers & $225,000 (formerly | | | | housing market, stimulate the economy and create |
| $150,000) for married joint filers. The credits are, | | | | new jobs in communities all across our great nation. |
| amazingly, fully refundable: they will be paid out to | | | | Extending and expanding the home buyer tax credit |
| eligible taxpayers, even if they owe no tax or the | | | | will enable even more families to take advantage of |
| credit is more than the tax owed. | | | | current low interest rates and affordable prices to |
| The definition of a first time home buyer is not having | | | | invest in their future through homeownership. |
| had an interest in a principal residence for three years | | | | |