November 7th, 2009
Homebuyer Tax Credit Extended!
President and Congress Also Expand Tax Credit!
Congress and the President wants more people to buy homes, so it’s extending and expanding a tax credit program set to expire in just a few weeks. Missed out on Cash for Clunkers? Congress has another deal for you: buy a home before May 1 and cut your tax bill. It’s all part of the government effort to help the struggling housing industry. Since January, first-time home buyers have been getting tax credits of up to $8,000 as part of the economic stimulus package.
The tax credit did help boost sales, just like Cash for Clunkers got people to buy new cars. The industry estimates 350,000 buyers would not have purchased their homes without the credit. But that credit was due to expire at the end of November. Congress agreed to extend it into the spring and to expand it to many people who already own homes.
First-time home buyers – or people who haven’t owned homes in the previous three years – can get up to an $8,000 credit. Buyers who have owned their current homes at least five years are eligible for a credit of up to $6,500 depending on their income. To qualify, you must sign a purchase agreement before May 1 and close before July 1. The expanded housing credit will help stabilize the markets during the winter months when sales are typically slow.
The chief economist at the National Association of Realtors says the tax credit has helped increase demand and reduce inventory which resulted in sellers getting higher prices than they would have otherwise. Extending and expanding the home buyers tax credit is expected to cost the government about $11 billion in lost taxes. President Barack Obama signed the bill into law Friday.
Want to learn more about these tax credits and how they can help you buy a home in the Richmond area? Skye Bruce Properties has a team of home buying experts who can help you understand these credits and help you find that perfect home. Contact Skye Bruce Properties today!
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