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Home buyer tax credit update-November 2, 2009

Dennis Norman

Dennis Norman

UPDATED: 6:15 pm Central Time-

The Senate voted 85-2 this afternoon to end debate on the amendment..This is clears a procedural hurdle and will allow the bill and amendment to be voted on by the Senate, most likely on Tuesday or Wednesday….If passed by the Senate it would then need to go back to the House for passage and then on to the President.

Here’s the latest info I have on the possible extension of the home-buyer tax credit:

The Dodd-Lieberman-Isakson Amendment I spoke of in last Friday’s update was added to the unemployment bill and has not yet been voted on by the Senate, but is expected to be voted on this week. Assuming the Senate passes the bill, it will then go to the House where, according to the latest information from the National Association of REALTORS(R), it is expected to accept the Senate amendments, vote on the package and send it to the President for his signature. The White House has indicated that President Obama will sign the legislation.

According to the National Association of REALTORS(R), the provisions of the current amendment for the home-buyer tax credit are:

  • Credit available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.
  • Credit remains at $8000 for first-time purchasers. No change to definition of first-time purchaser.
  • New $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
  • Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
  • New anti-fraud limitations are imposed.

I’ll keep you posted as I hear more.

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