First Time Home Buyer Tax Credit Extension

November 4th, 2009 9:15 AM

It's interesting how they add amendments to bills that don't seem to relate to each other.  But it looks like the bill will move forward for House approval, aides to Congressional leaders say the House could accept it this week,  sending the bill to the President to sign into law.

This could continue home sales growth in our area into next year.  The details of the bill are below.

The U.S. Senate voted Monday in favor of clearing HR 3548 to pass as soon as this week. The unemployment legislation includes the "Dodd-Lieberman-Isakson Amendment" which outlines a plan to extend and expand the first-time homebuyer tax credit that is set to expire Nov. 30.

This action comes after Congress voted last week to extend higher loan limits on federally backed mortgages.

Tax credit plan
The homebuyer tax credit expansion measure includes these provisions:

• Extends the $8,000 first time Homebuyers Tax Credit and creates a new $6,500 tax credit for homeowners buying a new home from December 1, 2009 to April 30, 2010. This is a change from the previous version of the bill.

• Homebuyers with contracts as of April 30 qualify for the credit so long as they complete the transaction within 60 days. This is a change from the previous version of the bill.

• Available to homebuyers with incomes of up to $125,000 for a single return or $225,000 for a joint return.

• Not available for homes costing over $800,000.

• Homebuyers who already own a home are only eligible if the home they are leaving has been used as a principal residence for 5 years or more.

• Provides authority to the IRS to do greater oversight while processing the return and requires that the taxpayer claiming the credit be 18 or older.
I was ok with all the provisions until I came to this one, not sure this is so good, what do you think?
• Members of the military, military intelligence and foreign service who are on qualified extended official duty are not subject to the recapture fee and individuals who have been deployed overseas for 90 days or more in 2008 or 2009 can claim the credit through April 30, 2011.

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