Buyers

You may be trying to follow the news about the current home buyer tax credit bill and wondering what the changes are going to be and how they affect you.

We’re still waiting to hear if President Obama will sign the expanded home buyer tax credit bill that Congress approved as of November 5, 2009. I will keep you updated when we hear the final news. The following information is excerpted from the NATIONAL ASSOCIATION OF REALTORS The Voice For Real Estate®, November 5, 2009.

“The National Association of Realtors® today commended the U.S. Senate and House of Representatives for passing a bill that includes an extension and expansion of the current home buyer tax credit as an important step in ensuring a real estate and economic recovery. 

Tax Credit Extension a Positive Step

The bill would extend 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.

Detailed information about provisions in the tax credit legislation is available on Realtor.org.”