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Obama Signs Tax Credit Extension for Home Buyers

November 9, 2009

Residential

condo-taxcredit-sqOn Friday, President Obama signed into law an extension and expansion of the home buyer tax credit.

A tax credit of $8,000 currently exists for first-time homebuyers who will close on a home by November 30, 2009. This credit was set to expire on December 1, but because of a continued weak economy and the efforts of Realtors, it will now remain in effect through the end of June 2010. To qualify, buyers must sign a contract before April 30, 2010 and close on the property by June 30, 2010. This opens up several new possibilities for buyers and sellers for the upcoming winter and spring seasons. It continues to be a buyer’s market even though the housing market has improved significantly since October 2008.

Additionally and perhaps of even greater consequence, the signed law offers a new $6,500 tax credit for current homeowners looking to buy up. This new credit is intended to reach those who have patiently waited for the right time to buy. Those who have used their home as their primary residence for five consecutive years our of the last eight can claim the credit. They must also close by the end of June, 2010. Coupled with the extension of the first-time home buyers’ credit, this additional provision should boost the real estate market in ways beneficial to buyers, sellers, and the real estate industry.

Congress substantially increased the income limits on the tax breaks as well. Individuals earning less than $125,000 will now be eligible (currently $75,000), and married couples with income less than $225,000 who file jointly are eligible (up from $150,000). One item to note, the tax credit can only be used to purchase homes that cost less than $800,000. Here’s a video to explain the details.

The National Association of Realtors (NAR) also breaks down the new law in a concise and simple way.

If you have already purchased a home and intend to use the tax credit, don’t forget to file. Visit www.irs.gov to find the necessary forms to receive the tax credit.

We would like to thank rutlo for sharing today?s photo via the Creative Commons License.

condo-taxcredit-sq

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About Robert John Anderson

Robert's knowledge and expertise from 15+ years of experience have made his business tremendously successful. He eats, sleeps, and lives real estate, which has catapulted him into Chicago's 1% of Top Producers for the last 8 years with $320+ million in sales, earning Baird & Warner's prestigious Founder's Club distinction. His voracious appetite for the Chicago market, its neighborhoods and trends keeps his knowledge current and growing. He focuses on high-quality marketing and service along with working to think outside of the box for all his clients needs. Robert specializes in sellers, buyers, luxury homes, developments and relocation; he also has experience in land acquisition, commercial, and retail sales. You can reach Robert at 312-980-1580 and [email protected] or visit him on Facebook, Zillow and LinkedIn.

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5 Responses to “Obama Signs Tax Credit Extension for Home Buyers”

  1. Matt Stigliano Says:
    November 10, 2009 at 6:46 am

    Robert - Just wanted to thank you for linking to my site in this article. It’s always nice to know people are out there reading. One note - your April 30th and June 30th date references should say “on or before.” You can actually do the actions on those days, it’s the following days (May 1st and July 1st) when the items are actually expiring, so anything before those dates is acceptable.

  2. Dennis Norman Says:
    November 12, 2009 at 11:59 am

    I have been in support of, and an advocate for, extending and expanding the homebuyer tax credit program- While I realize it is just a shot in the arm, or short-term fix, I still believed it to be in the best interest of the housing market…However, Ted Gayer from Brookings Institute, firmly believes the credits are a bad idea and shows the $8,000 credit actually costing $121,000 - his complete post and details is at:

    http://realestateconsumernews.com/financing/and-now-for-the-other-side-of-the-coin-on-the-home-buyer-tax-credit/

Trackbacks/Pingbacks

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