Senate Unanimously Passes Tax Credit For Many To Buy A Home
It's not just First Time Homebuyers this time. Even those who have owned a home for awhile are in the mix now. With overwhelming support and a vote of 98-0, the Senate passed a bill that would not only extend the existing First Time Homebuyers Tax Credit beyond the existing deadline of November 30th, but it would also allow "move-up" buyers to participate in a new tax credit.
The existing tax credit is set to expire on November 30th. That tax credit extends to people who qualify as "First Time Homebuyers" only. Those buyers are eligible for up to $8,000 in tax credits, but the home sale had to be completed by that date. With many buyers out there still trying to squeeze in a purchase prior to the deadline, the Senate has acted to extend the deadline until next year.
The interesting thing about this bill is that it also extends a new tax credit of up to $6,500 to existing home owners who purchase a home over the next few months. To qualify for the credit, one will have had to own a home as a principal residence for five consecutive years of the last eight years.
There are some limitations to both credits though. If you are single, the income limitation is $125,000 and if you are married, your joint income is limited to $225,000. In addition, the home being purchased can be no more than $800,000. For either credit, the new home needs to be under contract by April 30, 2010 and close by June 30, 2010.
Though nothing is finalized until it is passed by the House and signed by the President, it appears this will go through. If you are were planning to buy a home or put your home for sale in the Charlotte Region, now may be the time for you to take advantage of this limited time opportunity.
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