Home Buyer Credit Extension?

Well, it has been a few weeks since my last blog; the October 15^th deadline for individuals on extensions have come and gone and there is not too much going on in the tax world right now. But one thing that I wanted to mention was that it looks like there will be an extension of the $8,000 max Home Buyers Credit, so if you were thinking about buying a home for the first time but didn’t quite make the decision in time (this round ends December 1^st) then it looks like you will have some additional time to make your purchase. The current proposal will be extended to all contracts entered into by April 30^th 2010 and closed before July 1^st 2010.

It also looks like they are going to extend the credit, up to $6,500, to other non-first time home buyers as long as you have owned your home 5 years consecutively out of the past 8. It also looks like they will be raising the income level to extend the credit to more homebuyers to $125,000 for single and $250,000 for couples, phasing out for higher income earners.

This is still not a done deal, as there still are some issues over how to tighten down on alleged abusive use of the Credit, but if you are thinking about purchasing a home, keep your eye on this as the credit is fully refundable (meaning that you get it even if you don’t owe any taxes) and can help ease the cost of buying a new home.

11/6/2009 Update: The bill with the Home Buyer Credit just passed the House of Representatives and has already passed the Senate so it is cleared for the President’s expected signiture.

11/9/2009 Update: The president signed the bill on November 6th. See this post for updated information.

Tags: Credits, Homebuying, Tax

This entry was posted by Richard Rogers, EA on Thursday, October 29th, 2009 at 8:19 am and is filed under Credits, For Individuals. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

About The Author

Richard Rogers, EA

Richard Rogers has been working as a tax professional for over six years and has been working with small businesses for over 20. As an enrolled agent, he routinely represents the interests of taxpayers before the Internal Revenue Service and Franchise Tax Board. He works in a tax practice that focuses on the special needs of individuals and small businesses. Richard currently is employed in a private tax practice where he helps people and businesses resolve their tax issues, minimize their tax liability, and plan for their financial future. While Richard does most types of tax returns including individual, he specializes in small business returns including C-Corporation, S-Corporation, Partnership and LLC returns. Richard also has a strong background in accounting, management, and information systems as he worked as a CFO and CIO for a software development company for 12 years. Richard earned a bachelor’s degree in Business Administration from San Diego State University with in emphasis in Information Systems. He also taught business courses at the university. He currently stays abreast of tax law changes through continuing education, seminars, and research via the Internet.

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