05 November 2009

Senate approves Homebuyers Credit Extension and Expansion

Last night, with a vote of 98-0, the United States Senate approved extending and expanding the homebuyer tax credit.


As previously mentioned:
  • $8,000 tax credit to first time homebuyers (Definition of a first-time homebuyer according to the IRS: you did not own a home in the past 3 years).
  • The tax credit will actually be 10 percent of the home purchase price, up to $8,000.
  • New: tax credit of up to $6,500 for existing homeowners looking to purchase a different primary residence. Conditions: primary residence “swap”, buyers must have owned their home for five consecutive of the previous eight years.
  • New: income limits raised to $125,000 for single filers and $225,000 for joint filers (read: if you don’t file a US tax return, you don’t qualify – my apologies to my Canadian, South-American and European friends)
  • Purchase agreements have to be signed by April 30, 2010 and closed by June 30, 2010.
  • Purchase price of home must not exceed $800,000.


The United States House of Representatives will have to approve the language later this week, as early as today. If there are no further modifications made by the House, President Obama could see this bill on his desk by Friday.

Please do contact me if I can help you in any way or if you have further questions.

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