It’s Official… Obama Signed the Extension and Expansion of the Tax Credit Bill.
On Weds, Nov 4th, 2009, Congress nearly voted unanimously for The Unemployment Compensation Extension Act which included an amendment that extends and expands the Home Buyers Tax Credit. President Obama signed the bill today, Friday, November 06, 2009, setting it into effect.
So, here’s the deal…
The original tax credit of $8,000 which was to expire on November 30th, was available to first time homebuyers (defined as an individual who has not owned a home within the last 3 years).
The new bill centers on extending the popular $8,000 credit for first-time homebuyers that was included in the stimulus package. The credit will be available through next June as long as the buyer signs a binding contract by the end of April 2010. It also increased the income limits from $75,000 for an individual and $150,000 for a married couple, to $125,000 and $225,000 respectively.
The program has also been expanded to include a $6,500 tax credit for existing homeowners who buy a new place after living in their current residence for at least five years.
Remember, this is a tax credit. This means that if a first time home buyer were to expect a tax refund of, say, $1000, they would actually receive a tax refund of $9,000. The extension for the first time home buyers, along with the inclusion of the tax credit to existing homeowners will hopefully incent more people to dive into the Phoenix real estate market again.
If you have questions feel free to contact me at 602-620-6267 or via email. You can also download a one page breakdown of the tax credit provisions and frequently asked questions.
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