A compromise may have been reached in the Senate …
…. to both extend and expand the $8000 first-time homebuyers tax credit.
That's good news for the housing industry. They believe the credit has brought new families to the housing market, helped contribute to 3 consecutive months of rising home prices nationwide and continues to help it pull out of its 2 year downturn.
While it still needs to be formally passed, the agreement contains a few changes. The first-time homebuyers tax credit, worth up to $8,000, would be extended.
Homebuyers must have completed a sales agreement by April 30, 2010 but will have until June 30, 2010 to fully complete the transaction. In addition, it will offer a new credit of up to $6500 for some existing homeowners.
They must have resided in their current home for a consecutive 5 year period within the last 8 years. The qualifying income limits have been increased from $75,000 to $125,000 for single taxpayers and from $125,000 to $250,000 for joint taxpayers.
The new changes are aimed at widening the availability of a tax credit for homeowners other than just first-time homebuyers while precluding real estate investors from benefiting.
It is also hoped the changes will continue to help the housing market rebound.
Written by Erin McBratney, buyers agent for the Peter Toner Team
» Posted by Peter
