Recently, the Senate added a significant homebuyer tax credit to the housing stimulus plan. Here are the key elements of the plan:
*The tax credit is for the amount of $8,000.
* The tax credit is available to first-time home buyes for purchases of any home closing from 01/01/09 12/31/09.
* Able to claim the credit against the 2009 tax return. This is big to get out to clients in terms of stimulating a purchase in the early part of this year. More info on this to come.
* Buyers must occupy the home for three years as their principle residence
* Purchases of homes by investors are ineligible.
* Sunsets the previous $7,500 Housing Tax credit on the date of enactment.
* The credit is not repayable. (The $7500 credit previously in place was at a zero interest rate but had to be paid back over 5 years).
The details of the bill are not set in stone as of this writing. The President is expected to sign the legislation, part of the Economic Recovery and Restoration Act, within days. 8000 credit
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