The First Time Home Buyers Tax Credit is closer To extension.
The proposal would extend the $8,000 Tax Credit through April 30, 2010 and also extends the income cap to couples with a combined income of $225,000. This is an increase of almost $55,000 over the existing law. In addition it would add a $6,500 credit available to qualifying move up homebuyers who have lived in their current residence for 5 of the past 8 years. Under the new law existing homebuyers would not be required to sell their current home, but inorder to qualify the new home would have to be used as their primary residence; it could not be a vacation home.
The goal of the new legislation is to help first time homebuyers, move up homeowners, while excluding speculators looking to buy and flip. This legislation if passed could pay a significant role in keeping the momentum of the current housing recovery. We have seen a significant percentage of sales in the Charlottesville VA real estate market that are going to first time homebuyers over the past year.
RISMEDIA, November 5, 2009—After two weeks of delay, the Senate cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers. By an 85 to 2 roll call vote, the Senate voted to cut off debate on a package of measures that includes the homebuyer credit, making it virtually certain that the legislation will reach President Obama for his signature this week.