Senate & House Vote to Extend Homebuyer Tax Credit
Buying a home is about to get cheaper by $6,500 for a whole new crop of home buyers The current tax credit of $8000 for first-time buyers has been extended to May 1st. 2010, and for repeat buyers a credit of $6,500 will now be available but only if they have lived in their current home for five of the past eight years. Home prices are capped at $800,000.
Both the Senate and the House approved extending and improving the existing tax credit this week and the White House said President Barack Obama would sign the bill today (Friday 6th Nov, 2009.)
Good news indeed for taxpayers who will now be able to claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a check. Taxpayers will be able to claim the credit on their 2009 income tax return for purchases made in 2010.
Former real estate executive, Sen. Johnny Isakson, R-Ga said yesterday "This is probably the last extension." Buyers in both groups will have to sign a purchase agreement by April 30 2010, and close by June 30.
