The First Time Home Buyer Tax Credit is about to expire on November 30, 2009. The tax credit which is up to $8,000.00 is available to any home buyer who has not owned a home in the past three years. Congress introduced the program in February as part of the Stimulus Package.
Currently there are approximately 20 proposed bills in the House and Senate to extend and/or expand the credit, some with expansion of the credit, and other bills with restrictions and limitations that do not exist in the current law. One such extension proposal forward by Representative Ken Calvert, R-Corona (Riverside County) mirrors a bill sponsored by Senator John Isakson, R-Georgia which looks to increase the credit to $15,000 and make it available to any buyer who stays in a home for at least two years.
To obtain the tax credit as the law currently stands title must pass with a closed transaction no later than November 30, 2009. Open transactions will not qualify unless closed by that date.
The current first-time homebuyer credit is equal to 10 percent of the purchase price of a principal residence, up to $8,000. It applies to homes purchased after December 31, 2008, and before December 1, 2009. The credit phases out for single individuals with modified adjusted gross incomes above $75,000 ($150,000 for married couples filing joint returns). The current first-time homebuyer credit represents an extension and enhancement by the American Recovery and Reinvestment Act of 2009 original $7,500 maximum first-time homebuyer credit enacted under the Housing Assistance Tax Act of 2008 for purchases after April 8, 2008.
With continuing foreclosures especially in some of the more hard hit States such as California, and many option adjustable rate mortgages again ready to readjust the homebuyers credit would appear to be necessary to continue to fight the recession now declared over by the government.
Article courtesy of Peter S. Muffoletto, C.P.A. 21031 Ventura Boulevard, Suite 311 Woodland Hills, California 91364-2281 (818) 346-2160 Office (818) 346-3130 Fax www.petemcpa.com email@example.com
A Buyer's Market plus this tax credit makes it the perfect time to purchase your first home!
If you are a first-time home buyer in the Park City area contact Linda or Jason to get started now.
Park City Real Estate Search Berkshire Hathaway HomeServices Utah 2200 Park Avenue, Park City, Utah 84060 Linda: 435-640-4816 | Jason: 435-602-9294 firstname.lastname@example.org