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The New and Improved Home Buyer Tax Credit

Reblogger David Braddy
Real Estate Agent with Reece & Nichols Lake Ozark Real Estate

 

This is very Newsworthy information and welcome information for everyone here at Lake of the Ozarks here in Missouri. While feelings are mixed as to increased Government spending, in essence; are we robbing from Peter to pay Paul? Should the government be invovled at all? This is possibly something that can help the Real Estate market get moving again and in turn the rest of the economy. Time will tell, but this should be good news for anyone looking to buy a home in the next few months.

 

Original content by Claudette Millette

House on tax refundThe much-anticipated extension to the home buyer tax credit has finally been approved.  The Senate's vote yesterday resulted in a 98-0 win and today it was passed in the house.  The bill now moves to the President's desk for a final signature. 

First-time home buyers have been eligible for tax credits of up to $8,000 since last January as part of this year's economic stimulus package.  The newly backed program will expand the credit to include existing home owners.  

Under the revised program, those who have owned a home for at least five years will be able to apply for tax credits of up to $6,500 when they purchase their next home.  To qualify, buyers will have to sign a purchase agreement by April 30, 2010 and close by June 30. 

The maximum purchase price on a home will be $800,000 with vacation homes not eligible. Income limitations are $125,000 for single tax payers and $225,000 for joint filers. 

The National Association of Realtors (NAR) and the National Association of Home Builders (NAHB) have been lobbying hard for the extension and expansion of the tax credit.  NAR claims that so far, about 1.4 million first-time homebuyers have qualified for the program and they estimated that 350,000 of these buyers would not have otherwise purchased. 

The tax credit is also set to be extended for another year for military personnel serving outside of the United States until June 30, 2011. 

Senator Johnny Isakson, who heavily pushed for the extension, along with his own version that would have increased the credit to $15,000 stated, "This is probably the last extension." 

But, is this really true?  When April 2011 comes around and the housing market is still not in full recovery mode, will the politicians be able to let this go and actually come to an end, or could it possibly become a more permanent subsidy? 

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David has years of real world sales & marketing experience, his career has been in Sales, Marketing and Real Estate. He has numerous sales records & awards to his credit, some that still remain unbroken. Since selling his companies and moving to his home at Lake of the Ozarks he has became a licensed Realtor and is now helping people successfully sell their properties in these trying times. Visit Lake of the Ozarks Real Estate