The U.S. House and Senate are close to an agreement to extend the home buyer tax credit due to expire at the end of this month.
The Senate is expected to vote Wednesday while the House could approve it later in the week – likely before Friday when the monthly report on the unemployment rate will be released.
The measure that is slated to pass would cover homes under contract by April 30. Also, anyone taking the credit from a home purchased in 2010 would be able to take the credit when they pay their 2009 taxes.
First-time home buyers would be eligible for $8,000, but purchasers don’t have to be first-time buyers. Anyone who has owned a home for at least five years could get a $6,500 credit on a new residence.
Income limitations rise under the new plan with individuals earning up to $125,000 a year and couples earning up to $225,000 eligible. People who earn more would be eligible for smaller credits.
Source: The New York Times, Jackie Calmes (11/4/2009)
Showing posts with label tax. Show all posts
Showing posts with label tax. Show all posts
Wednesday, November 04, 2009
Monday, November 02, 2009
Extending the Credit | Almost There
The extension and expansion of the homebuyer tax credit is the pending business in the Senate.
After a long week of negotiation on the credit, an agreement on the scope of both expansion and extension has been reached. The extension is part of a larger bill that has not yet gone to a vote, however.
A Senate vote on the underlying bill will occur in the Senate during the week of November 1. The package will then go back to the House.
The House is expected to accept the Senate amendments, vote on the package and send it to the President for signature.
The underlying bill is an extension of unemployment benefits. Other provisions in the bill include expansion of the net operating loss carryback rules, new requirements for some tax return preparers and noncontroversial provisions that "pay for" these changes.
The agreement on the extension and expansion of the credit is as follows:
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.
After a long week of negotiation on the credit, an agreement on the scope of both expansion and extension has been reached. The extension is part of a larger bill that has not yet gone to a vote, however.
A Senate vote on the underlying bill will occur in the Senate during the week of November 1. The package will then go back to the House.
The House is expected to accept the Senate amendments, vote on the package and send it to the President for signature.
The underlying bill is an extension of unemployment benefits. Other provisions in the bill include expansion of the net operating loss carryback rules, new requirements for some tax return preparers and noncontroversial provisions that "pay for" these changes.
The agreement on the extension and expansion of the credit is as follows:
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.
- The White House has indicated that President Obama will sign the legislation.
Thursday, October 15, 2009
Congress Debating the Tax Credit
Congress is considering expanding and extending the $8,000 first-time homebuyer tax credit, which expires Nov. 30.
More than 1.8 million home buyers will have used the credit by the end of November, including an estimated 355,000 who wouldn’t have bought a home without it, according to the National Association of REALTORS® and other analysts.
Mark Zandi, chief economist for MoodysEconomy.com, is among those in favor of extending the credit. Zandi would also make it available to all homebuyers.
"The most fundamental argument for the credit is that nothing works in the economy if housing is falling," Zandi said.
"[The credit] is a good insurance policy. It's vital to stem the housing price declines."
Opponents argue that the tax credit is too expensive and doesn’t help enough people.
Extending the credit through the end of 2010 and making it available to single filers earning up to $150,000 and joint filers earning up to $300,000 would cost an estimated $16.7 million.
Some in Congress propose using unspent money from the $787 billion stimulus bill to pay for it.
Source: CNNMoney.com, Les Christie (10/14/2009)
More than 1.8 million home buyers will have used the credit by the end of November, including an estimated 355,000 who wouldn’t have bought a home without it, according to the National Association of REALTORS® and other analysts.
Mark Zandi, chief economist for MoodysEconomy.com, is among those in favor of extending the credit. Zandi would also make it available to all homebuyers.
"The most fundamental argument for the credit is that nothing works in the economy if housing is falling," Zandi said.
"[The credit] is a good insurance policy. It's vital to stem the housing price declines."
Opponents argue that the tax credit is too expensive and doesn’t help enough people.
Extending the credit through the end of 2010 and making it available to single filers earning up to $150,000 and joint filers earning up to $300,000 would cost an estimated $16.7 million.
Some in Congress propose using unspent money from the $787 billion stimulus bill to pay for it.
Source: CNNMoney.com, Les Christie (10/14/2009)
Tuesday, September 29, 2009
Getting the Tax Credit Extended: Outlook
Courtesy of Robert Freedman, senior editor, REALTOR® Magazine
What are the chances of getting the first-time home buyer tax credit extended, particularly before its expiration Dec. 1?
No one can know that, of course, but what’s clear is that the leadership in Congress wants it extended -- and if you have the leadership on board, you’re in a strong position.
Yet with health care reform consuming Congress’ attention, even the leadership faces a challenge ensuring the tax credit gets the consideration it deserves.
After sitting down with Linda Goold, NAR’s director of tax policy, and Samuel Whitfield, an NAR legislative representative, I learned the tax credit has really been the economic recovery’s workhorse.
The IRS says 1.4 million households have used the credit. What’s more, a number of independent looks at the credit, including one by Economy.com (owned by Moody’s) and Campbell Surveys, estimate that between 350,000 and 400,000 home purchases would not have happened without the credit. NAR has come up with a similar estimate.
Goold and Whitfield say there’s bipartisan support for extension, and NAR is on Capitol Hill daily reminding lawmakers that the clock is running. But it’s coming down to the wire.
What are the chances of getting the first-time home buyer tax credit extended, particularly before its expiration Dec. 1?
No one can know that, of course, but what’s clear is that the leadership in Congress wants it extended -- and if you have the leadership on board, you’re in a strong position.
Yet with health care reform consuming Congress’ attention, even the leadership faces a challenge ensuring the tax credit gets the consideration it deserves.
After sitting down with Linda Goold, NAR’s director of tax policy, and Samuel Whitfield, an NAR legislative representative, I learned the tax credit has really been the economic recovery’s workhorse.
The IRS says 1.4 million households have used the credit. What’s more, a number of independent looks at the credit, including one by Economy.com (owned by Moody’s) and Campbell Surveys, estimate that between 350,000 and 400,000 home purchases would not have happened without the credit. NAR has come up with a similar estimate.
Goold and Whitfield say there’s bipartisan support for extension, and NAR is on Capitol Hill daily reminding lawmakers that the clock is running. But it’s coming down to the wire.
Friday, September 04, 2009
$8000 First-Time Homebuyer Tax Credit Ending Soon
The cash for clunkers program got a lot of publicity about its end date. However, there is a great government program that few people know about that is still available.
Yes, we are talking about the $8,000 first time homebuyer tax credit.
This great program begun under the last days of the Bush administration's Stimulus plans as a repayable $7,500 credit.
With a changing economy and market, it grew into a $8,000 non-repayable credit. The homebuyer tax credit is one of 10 key provisions of the American Recovery and Reinvestment Act signed by President Obama into law on Feb. 17, 2009.
That’s right: First Time Homebuyers - FREE MONEY, JUST FOR YOU!
Who Qualifies?
First-time home buyers who purchase homes between Jan. 1, 2009 and Dec. 1, 2009.
To qualify as a “first-time home buyer,” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
Which Properties Are Eligible?
The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
How Much Will the Credit Be?
The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:
The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.
The buyer’s income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.
Why bring this up now? Well, with the end of the year fast approaching - in a few weeks we will be well into the last quarter of the year - and transactions taking many times longer to close than usual (sometimes due to financing delays) there is little time left for first-time homebuyer’s to purchase a property and be eligible for the credit.
(With the average short sale or bank owned transaction taking around three months to close the time really is now!)
FHA financing will even allow this credit to be used as downpayment funds. The IRS has published a helpful flyer about the program available here.
Yes, we are talking about the $8,000 first time homebuyer tax credit.
This great program begun under the last days of the Bush administration's Stimulus plans as a repayable $7,500 credit.
With a changing economy and market, it grew into a $8,000 non-repayable credit. The homebuyer tax credit is one of 10 key provisions of the American Recovery and Reinvestment Act signed by President Obama into law on Feb. 17, 2009.
That’s right: First Time Homebuyers - FREE MONEY, JUST FOR YOU!
Who Qualifies?
First-time home buyers who purchase homes between Jan. 1, 2009 and Dec. 1, 2009.
To qualify as a “first-time home buyer,” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
Which Properties Are Eligible?
The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
How Much Will the Credit Be?
The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:
The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.
The buyer’s income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.
Why bring this up now? Well, with the end of the year fast approaching - in a few weeks we will be well into the last quarter of the year - and transactions taking many times longer to close than usual (sometimes due to financing delays) there is little time left for first-time homebuyer’s to purchase a property and be eligible for the credit.
(With the average short sale or bank owned transaction taking around three months to close the time really is now!)
FHA financing will even allow this credit to be used as downpayment funds. The IRS has published a helpful flyer about the program available here.
Monday, June 22, 2009
Home Buyer Tax Credit Could Expand
A first-time home buyer tax credit of up to $8,000 has helped to move housing inventory during an otherwise sluggish real estate cycle. Now both legislators and the business community are hoping to build on the incentive's success by expanding it.
A number of bills have been introduced in the House and the Senate that lobby for an expansion of the measure. Among the proposed changes:
USA Today, Stephanie Armour (06/22/09)
A number of bills have been introduced in the House and the Senate that lobby for an expansion of the measure. Among the proposed changes: - Setting a new cap of $15,000.
- Extending the tax break into mid-2010.
- Making the benefit available to all home buyers, not just first-timers.
- Offering a separate tax credit to $3,000 for borrowers who refinance.
USA Today, Stephanie Armour (06/22/09)
Thursday, April 16, 2009
New California Home Tax Credit Going Fast
A lot has been made about the recent Economic Stimulus plan's home buyer's tax credit. However, there is this lesser-known incentive, courtesy of the California Franchise Tax Board.
It's essentially a California-only tax credit for New Construction homes, which have never been occupied.
The link above will direct you to the State's Web site, which outlines the application process and lists the requirements to qualify for the first-come, first-served credit.
Also of note; as of April 8th, nearly 30% of the State's credit allocation has already been claimed. However, no acceptance letters will be mailed until May 1, 2009.
I'd love to be in the position to purchase a new development, and with the mortgage protection program, it's an excellent time to buy. Cash is definitely king right now.
It's essentially a California-only tax credit for New Construction homes, which have never been occupied.
The link above will direct you to the State's Web site, which outlines the application process and lists the requirements to qualify for the first-come, first-served credit.
Also of note; as of April 8th, nearly 30% of the State's credit allocation has already been claimed. However, no acceptance letters will be mailed until May 1, 2009.
I'd love to be in the position to purchase a new development, and with the mortgage protection program, it's an excellent time to buy. Cash is definitely king right now.
Subscribe to:
Posts (Atom)
Posts
