The 1st time home buyers tax credit has done a fantastic job of putting at least a little bit of floor in the housing market. It has now been extended and expanded. Under the new legislation, which President Obama is expected to sign, the 1st timers part of the program is extended through April 1. A new section is added that will give a $6500 tax credit to buyers who have owned their current home for at least 5 years.
The 1st time credit is $8000. The buyer must have the home under contract by April 30th. The closing must take place by the end of June. The minimum qualifying income levels have been increased as well. The single persons income level has been increased from $75000 to $125,000. The couples level has been increased from $150,000 to $225,000. This should make the tax credit available to almost everyone.
Persons who have owned their home for over 2 years still qualify for $250,000 tax exemption on the gain from their home or $500,000 exemption for couples. This could be an opportunity to get a lot of tax free cash for many people. This should be a better boost to the economy than almost any other provision of the stimulus package.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com/ His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
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1 comment:
i like how the concept is going from day to day..its helpful.
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