Extension of Home Buyers Tax Credit is Almost a Done Deal

Extension of the Home Buyers Tax Credit into 2010 is almost a done deal.  The United State Senate voted last night (Nov. 4) to extend and expand the popular tax credit for home buyers that was scheduled to expire on Nov. 30 of this year.  The House is expected to schedule a quick follow up vote and there is every indication that the President will sign the legislation.

As it stands now, this is what we can expect:

First time home buyers – a credit of ten percent of the purchase price of a primary residence, up to a maximum of $8,000. First time home buyers are defined as people who have not owned a home in the previous three years.

Repeat buyers – a credit of ten percent of the purchase price of a primary residence, up to a maximum of $6,500, for repeat buyers who purchase between Dec. 1, 2009 and May 1, 2010.  Repeat buyers must have owned their current home for at least five years.  The credit can not be used for houses costing more than $800,000

Deadline for qualifying: purchase agreements must be signed by April 30, 2010 and closings must be final by June 30.

Military deadline: is extended by a year for members of the military who have served outside the U.S. for at least 90 days between Jan. 1, 2009 and May 1, 2010.

Income limits: Individuals with annual incomes up to $125,000 and joint filers with incomes up to $225,000 qualify for the full cre2009 and May 1, 2010.dit. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.

Stay tuned, as we get complete news on the extension of the home buyers tax credit for 2010 you’ll see it here with all the details.

Michael