Didn't see this mentioned on any other threads. So the First Time Homebuyer Credit has been extended to April 30, 2010. This extension is valid for people entering a contract by April 30th and close the home by June 30th, 2010.
New legislation, the Worker, Homeownership and Business Assistance Act of 2009, which was signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. The new law:
Extends deadlines for purchasing and closing on a home.
Authorizes the credit for long-time homeowners buying a replacement principal residence.
Raises the income limitations for homeowners claiming the credit.
Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.
People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009.
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I was chatting with my friends from the west coast over the holidays and the home prices are not falling as fast as they hoped for in the last month or two. Looks like the first time credit is still encouraging the prospective homebuyers to look for homes.
Just gotta wait for 3 more months until this stupid tax credit is over. Hate to compete with other shoppers that are in the midst of buying their home with that credit. Outbidding us even though it's not even worth it.
Prices should drop without these buyers when the credit is over!
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Just gotta wait for 3 more months until this stupid tax credit is over. Hate to compete with other shoppers that are in the midst of buying their home with that credit. Outbidding us even though it's not even worth it.
Prices should drop without these buyers when the credit is over!
Just gotta wait for 3 more months until this stupid tax credit is over. Hate to compete with other shoppers that are in the midst of buying their home with that credit. Outbidding us even though it's not even worth it.
Prices should drop without these buyers when the credit is over!
Very true. Might be less competition after the rebate is gone. I would wait until then too if I were you.
11-08-2009, 10:54 PM
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