Extension on the $8000 Tax Credit? AND $6500 Credit?

Extension of the $8,000 First Time Home Buyers Tax Credit, and NEW $6,500 Tax Credit!

Senate leaders had reached a tentative agreement on Wednesday, October 28, 2009 but no bill was passed as of yet. The agreement will extend the $8,000 tax credit from its current November 31st expiration to April 2010, for having any contract or settlement by June 30, 2010.

In the bill there is also a proposed NEW $6,500 credit for current homeowners who lived in their primary residence for 5 years or more and have a joint income below $250,000 ($125,000 for singles). As the previous tax credit has pulled first time home buyers out of the woodwork, the extension will pull any remaining ones off the fence. This "NEW" $6,500 tax credit could pull any existing home owners out into the market as well. The positive aspects of this $6,500 will encourage current owners to sell their existing property and purchase another property.

This is excellent news for all Real Estate professionals!

There was no agreement whether to put the bill to vote on its own or or jointly with other proposed legislation. The bill has to be voted in the house and signed off on by the president to become a law. Lets hope it gets approved before the Winter season!

What do you guys think the impact will be on the extension of the First Time Home Buyers Tax Credit, as well as the $6,500 Credit for existing home owners?

Congress has extended and expanded the homebuyer tax credit. The modifications in the column labeled

"December 1 - April 30, 2010" become effective when President Obama signs the bill. All changes made

to the current credit become effective on that date, as well!!

Mike Linkenauger

First Coast Realty Associates

(904)733-4911

Find Jacksonville FL Real Estate on our local website, or subscribe to my blog at http://activerain.com/blogs/mikelinkenauger