Tax Credits – They’re Not Just for 1st Time Buyers Anymore!

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While not yet officially passed, it seems increasingly likely that Congress will extend a new version of the home buyer tax credit.  In what is sure to be greeted as great news to current home owners looking to trade up, the new bill will likely include a credit for them as well. 

The current $8000 tax credit for first time buyers is set to expire November 30, meaning any first time buyer that is not already in contract has basically missed out.  While it is hard to measure the exact impact, most people agree that the tax credit has certainly buyoed the market. 

Possibly as early as next week we should see the new bill passed.  CNN’s Business Week reports the following details:

-First time buyers can continue to claim the $8000 tax credit, but now current home owners who have lived in the same residence for at least 5 years can enjoy up to a $6500 tax credit if they trade up to a more expensive primary residence. 

-Full credit limited to borrowers/buyers with an income less than $125,000 or or $225,000 for married couples.

-Home must be purchased for less than $800,000.

-Contracts must be signed by April 30, 2010 and sales must close by June 30, 2010.

As details are revealed I will happily provide them in this space.

Thank you CNN Business Week for story.

October 29, 2009 by Jesse Knight

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