First-Time Home Buyers Tax Credit Extended!!

Hello again Peachtree City!!  As the dust finally settles….the Senate finally decided not only to extend the tax credit but to expand it as well!  

Yes, you can exhale now, especially all you folks that waited until the last minute to take advantage of the credit.  Legislation passed on Wednesday, November 4, 2009 which will  extend the much debated $8,000 first-time home buyer tax credit.  Also included in the Bill was the establishment of a new $6,500 tax credit for “move-up” buyers!  

What is a ”move-up” buyer?  By definition it is those folks whom have purchased a home and are looking to move up into a more expensive home.  Hmmmm….sound like how we got into this problem in the first place!  Okay…I’ll assume that you move-up buyers will have a bit more skin in the game and have lived through the scrutiny of the banks and mortgage companies!  Uncle Sam will require you to use the home as your principle residence for at least five years.  

Home buyers will be able to utilize both the $8,000 first-time home buyer credit and the $6,500 credit for “move-up” buyers through April 30, 2010. Please note that buyer’s who have contracts to buy a home as of April 30, 2010, will still qualify for the credit as long as the transaction is completed within 60 days.   

Some other changes are that the new bill contains strong anti-fraud language giving the IRS greater oversight during the processing of the return rather than waiting for an audit situation.  Armed Forces personnel, and other Military Foreign Service personnel who are on extended duty to include individuals deployed overseas for 90 days or more in 2008 or 2009 would have until April 30, 2009, to claim the home buyer tax credit. 

So don’t dilly-dally like a lot of folks did praying for the extension to pass.  With the large amount of controversy on this Bill, Congress won’t be extending this opportunity past April 30, 2010.