Well, it is finally official (sorta, President O still needs to sign off). The home buyer tax credit has been extended and expanded until next year. So here are the highlights:
First time home buyers still get the $8k tax credit. However, you must be under contract by April 30th, 2010 and closed no later than June 30th, 2010. So all the procrastinators, you got a second chance at getting the credit. This should stop the “can I get closed by November 30th” calls I have been getting of late.
However, the real news is that the credit now applies to move up buyers.
A $6500 credit is now available to move up buyers who have lived in their previous residence at least five years. Although the new home can’t be more than $800k and it must be a primary residence. There are also income limitations. To get the full credit, a single filer is capped at $125k and dual earners at $225k. However, if you make more than the limits, the credit is reduced 5% for each $1000 above $125k & $225k. For example, if you make $126k, you the credit is reduced to $6175. At $127k it is reduced to $5850 and so forth. So at $135k you would only get 50% of the $6500 credit and once you cross $145k you get squat. Something is better than nothing!
I will have a few more thoughts on this later as more develops.
