| It looks like the First Time Home Buyer Tax Credit | | | | results in a refund for the balance. |
| may be sticking around a little longer than originally | | | | Eligibility and amount of new & improved credit: |
| planned. There are still a few questions regarding | | | | Same as above, however there is a new component |
| amendments requested by the Senate Republicans, | | | | that allows an additional $6,500 credit for those who |
| but if all can be smoothed over, the credit will be | | | | have lived in their homes for five of the last eight |
| extended until April 30. | | | | years - thus not restricting the benefit to first time |
| Introduced last February as a means of kickstarting | | | | home buyers. |
| the sluggish housing market, over 1.2 million borrowers | | | | Those buyers with incomes exceeding $125,000 for |
| have claimed $8.5 billion out of the original $13.6 billion | | | | singles and $225,000 for married couples are not |
| allocated for the credit. Did the tax credit do what it | | | | eligible. Homes valued at more than $800,000 are also |
| was intended to do? Depending on which economist | | | | ineligible. |
| you speak to, an estimated 150,000 to 400,000 home | | | | Fraud protection: As with any new legislation, there are |
| sales were the direct result of the Home Buyer Tax | | | | those who attempt to take advantage or exploit. |
| Credit. | | | | Thousands of false claims were received from |
| According to the latest proposed bill, the revised tax | | | | children and teenagers. In the new and improved credit, |
| credit will contain new and improved features to reach | | | | applicants must be 18 years of age or over to apply. |
| a larger cross section of potential home buyers as well | | | | Whether these new changes will make a difference in |
| as extend the deadline to encourage more potential | | | | the housing market is up for debate. Some feel that |
| buyers. | | | | offering it up to those who already own homes, isn't |
| Some of the features of the new Home Buyers Tax | | | | really doing anything to reduce inventory since they will |
| Credit include: | | | | only be selling one home to buy another. However, it |
| Deadline for current credit: Home buyers must close | | | | may encourage the fence sitters to take the initiative |
| the deal on a home purchased in 2009 by November | | | | and invest. |
| 30/09. As long as they live in the home for at least | | | | According to Mark Zandi, chief economist at Moody's |
| three years, the credit is not repayable. | | | | Economy.com, he is much more optimistic and |
| Deadline for new & improved credit: Home buyers | | | | believes, “The tax credit is not a very efficient tax |
| must purchase a new home by April 30, 2010, but as | | | | cut, but not extending it would do significant damage to |
| long as they were under contract by this date, would | | | | the still fragile housing market.” |
| have up to 60 days to close the deal. | | | | Many in the real estate industry believe that extending |
| Eligibility and amount of current credit: First time home | | | | the tax credit will help to sustain any momentum |
| buyers are eligible for up to $8,000 in the form of a | | | | gained in home sales and carry it over into the critical |
| non-repayable tax credit. When claimed on a tax | | | | spring buying season. |
| return, it reduces the amount of tax payable and | | | | |