TAX CREDIT EXTENSION ALMOST LAW

According to California Assn of Realtors, The House today passed a bill extending and expanding the Federal Tax Credit. The Senate passed the bill late yesterday and it will now go to President Obama for his signature. When signed it will extend the credit to April 30, 2010 with a 60 day extension possible if a binding contract is in place before the April deadline.

FIRST TIME HOME BUYERS will continue to receive a tax credit of up to $8,000, while existing homeowners will receive a reduced credit of up to $6,500.

EXISTING HOMEOWNERS will be eligible for the $6,500 if they have lived in their current residences for at least five years. The bill also will increase the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers, to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000.

The home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.