The $8,000 first-time home buyer tax credit was scheduled to expire in just a few short weeks…Nov 30, 2009. However, the Senate voted unanimously to extend the credit on Monday and the House of Representatives approved the extension yesterday afternoon by a vote of 403-12. The extension now also includes a tax credit for "move-up" home buyers. The bill now goes to the President for his signature, which is expected to happen today.
Home Buyer Tax Credit Expansion and Extension
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The $8,000 tax credit will be extended and available for first-time home buyers through May 1, 2010. Income limits are expanded to $125,000 for single tax payers and 225,000 on a joint return.
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A new $6,500 tax credit will be available for "move-up" buyers who purchase between December 1, 2009, and May 1, 2010. To qualify, buyers must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.
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Prospective buyers with binding contracts in place as of April 30, 2010, will be allowed an additional 60 days to complete the transaction.
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Limitation on the cost of a purchased home is $800,000.
If you know anyone looking to buy their first Los Angeles home at a time when prices and interest rates are still low, or if you are thinking of buying another Los Angeles home and getting the new $6,500 credit please contact me today.