Breaking News: Home Buyers Tax Credit Extension!!
A Senate vote on the underlying bill will occur in the Senate during the
week of November 1. The package will then go back to the House. The House
is expected to accept the Senate amendments, vote on the package and send
it to the President for signature. The underlying bill is an extension of
unemployment benefits.
Other provisions in the bill include expansion of the net operating loss
carryback rules, new requirements for some tax return preparers and noncontroversial
provisions that "pay for" these changes.
The agreement on the extension and expansion of the credit is as follows:
· Credit will be available for purchases before May 1, 2010. Prospective
purchasers with binding contracts in place as of April 30, 2010 will be allowed
an additional 60 days to complete the transaction.
· Credit remains at $8,000 for first-time buyers. No change to definition
of first-time purchaser.
· New $6,500 tax credit for repeat buyers who purchase between December 1,
2009 and May 1, 2010. Repeat buyers must have lived in their homes consecutively
for five of the previous eight years.
· Income limits are expanded to $125,000 on a single return and $225,000
on a joint return. Current law $20,000 phase-out retained.
· New anti-fraud limitations are imposed.
The White House has indicated that President Obama will sign the legislation.
Source: National Association of Realtors®
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