Congress is scheduled to vote today to expand and extend the Homebuyer Tax Credit (the Senate already passed the bill on Wednesday), and has enhanced it to include a whole new group of homebuyers. The current $8000 tax credit was geared towards first-time homebuyers, the new bill will include current homebuyers as well. Here are the new numbers:
•1) Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500.
•2) First-time homebuyers - or anyone who hasn't owned a home in the last three years - would still get up to $8,000.
•3) To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.
•4) The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible.
•5) The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.
•6) The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.
This is likely to be the last extension for homebuyers in any category, so if you, or a buyer you are working with is looking to purchase don't miss out on this opportunity.