Tax Credit for Buyers May Expand
June 23, 2009According to an article published on USAToday.com, lawmakers have proposed some fairly significant changes to the existing $8,000 tax credit available to first time home-buyers. Currently, the $8,000 credit is available to first time buyers (anyone who has not purchased a home within the past 3 years). Single people making less than $95,000 per year and married couples making less than $170,000 per year combined are eligible for a partial credit. Single people making less than $75,000 per year and married couples making less than $150,000 per year are eligible for the full credit. Buyers do not have to repay the credit if they own and occupy the home for three years or more.
The new legislative proposals include:
- Proposal 1: Tax credit to rise to $15,000. Eligibility no longer restricted to first time buyers. Income restrictions lifted.
- Proposal 2: The $8,000 tax credit would be extended until June 2010 and apply to all buyers. A $3,000 tax credit would be extended to those refinancing.
- Proposal 3: The $8,000 tax credit would be extended to all buyers through 2010.
No word on how realistic these proposals are, but they are floating around out there. The full article is available by clicking HERE.
Will new legislation save housing or create more problems?
*Always consult an accountant for tax advice.
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I’m all for helping out, but only if we can… Now, about the extension and expansion of the homebuyer tax credit, where are we honestly gonna get the funding? Wouldn’t that do more damage to our economy than good?