First-Time Homebuyer Tax Credit Extended AND Expanded into 2010

October 30, 2009 by G.E. Miller
Filed under The Hotness

first time home buyer tax credit extended

In a poll I took a few weeks back, 30% of you said you would take advantage of the first-time home buyer tax credit if it were extended. Well, it looks like you might get your chance – but, you’re not the only ones. Before we get into the details of the homebuyer tax credit extension AND expansion, let’s review how you voted.

first_time_homebuyer_tax_credit_poll

This means that if 100% of you stuck to your word that you would take advantage of the credit, then a whopping 58% of voters will have qualified. Outstanding! On to the news.

First Time Home Buyer Tax Credit Extension Details

If the Democrats version of the Senate bill is passed when it comes to vote in the next few weeks (as it is expected to), the first-time home buyer credit extension would have the following details:

The credit would be available for homes that go under contract by April 30, 2010. However, you would still have 60 days afterward to close.
It would be attached to a bill to extend unemployment benefits that is expected to be voted on in the next few weeks.
First-time buyers (those who have not owned a home for three years) can claim an $8,000 credit, the same as before the extension.
Income limits would be expanded: $125,000 a year for individuals (up from $75,000) and $225,000 (up from $150,000) a year for married couples who are filing a joint return.
The proposal will include anti-fraud measures, including minimum age requirements and additional authorities for the IRS.

First Time Home Buyer Tax Credit Expanded to Existing Home Owners

Perhaps the most interesting addition to the bill is that existing homeowners who buy a new principal residence after living in their current home for at least the last five years can claim up to a $6,500 tax credit. Although I don’t know that I agree with the 5 year mandate (I think that’s a bit high), at least some of us who already own homes can now get in on the tax credit. Before you go out and close on a house, make sure that the bill actually passes!

Reader Discussion:

If the tax credit extension passes, would you take advantage?
Does this motivate you to want to buy your first home?
If you’ve owned a home for 5 years, does the tax credit expansion motivate you to move?

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