HOMEBUYER TAX CREDIT INFORMATION:
Congress has approved an extension and expansion of the current home buyer tax credit. We believe this is an important step in ensuring a real estate and economic recovery. NAR economists estimate that the current tax credit has contributed approximately $22 billion to the general economy. Approximately 2 million people are expected to take advantage of the tax credit this year.
NAR President Charles McMillan says “the tax credit is working and is being used by buyers who were waiting for the right opportunity to get into the market. This important incentive is helping to stabilize the housing market, stimulate the economy and create new jobs in communities all across our nation. Extending and expanding the home buyer tax credit will enable even more families to take advantage of current low interest rates and affordable prices to invest in their future through homeownership.”
►The law extends the present $8,000 tax credit for first-time home buyers through April 30, 2010.
►Current homeowners are eligible for a $6,500 tax credit through April 30, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years.
►If potential home buyers have a binding contract on or before that date, they will have until July 1 to close the transaction.
►Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples.
►The purchase price of the home cannot exceed $800,000.
►To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.
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