Great news for consumers and the housing market recovery!

November 4, 2009, the U.S. House of Representatives voted to extend the home buyer tax credit formerly available only to first-time home buyers.  As of today, the federal tax credit will be extended to April 30, 2010, with a 60-day extension available if a binding contract is in place prior to the deadline.

This tax credit is now available to existing homeowners also with a few caveats.  Existing homeowners will be eligible for a reduced credit of up to $6,500 as compared to a tax credit of up to $8,000 for first-time home buyers.  In addition, existing homeowners must have lived at their current residence for at least 5 years.

This bill also increased the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000 respectively.  In both instances, the price of the home is capped at $800,000.

Taxpayers can claim this  home purchase credit on their 2009 tax returns, but as always, please consult with your tax preparer or CPA for professional advice.

Home buyers do not have to pay back the credit as long as the home remains their primary residence for 36 months.

If you would like to search the MLS for listings in  San Luis Obispo County,visit my website.  If you have any real estate questions or general questions about Paso Robles or San Luis Obispo County, please contact me via email or call me at (805) 235-0234 for more information.

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