The Extention AND Expansion of the First-time Home Buyers Tax Credit
The Senate passed the extention/expansion of the First-time Home buyers $8000 tax credit earlier this week, and the House passed it yesterday. Many expect the president to sign it into law today because it also includes an extention of unemployment benifits. (Signed on Friday:)
1. The extention includes purchase contracts made before May 1, 2010, (which must be settled before July 1, 2010).
2. The income limits have been increased, $125,000 for a single purchaser, $225 for married.
3. The tax credit has been expanded to include current homeowners who are selling their current home (if they've lived there 5 of the previous 8 years), and are buying a home by the previous date. The tax credit in this case is $6500.
4. They've also added a limit to the cost of the home purchased: $800,000.
NAR (National Association of Realtors) has published a chart detailing the changes to the first-time home buyer tax credit.
National Association of Home Builders, NAHB estimates that the extended and expanded home buyer tax credit will create 211,000 jobs and generate 180,000 additional home sales in the coming year. It is also expected to generate $9.6 billion in wage income and $6.9 billion in federal, state and local taxes.
The legislation also extends unemployment insurance benefits and offers relief to cash-strapped firms by providing broader tax benefits for businesses with net operating losses (NOLs). "The new NOL rules will throw a lifeline to struggling businesses, allowing them to continue making payrolls, paying business loans and otherwise keep their doors open until the economic recovery takes hold," said NAHB president Joe Robson.
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The Highland Real Estate Group
Chris & Karen Highland * Frederick County MD Real Estate Agents
Specializing in Frederick County Real Estate
301-831-9947
Real Estate Teams, LLC
isell4u2@msn.com
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We’re Chris and Karen Highland, The Highland Real Estate Group. We’ve lived in the Frederick area for over 18 years and are raising our 4 children here. We’ve seen many communities built where there once was farmland. We love the “small-city yet large-town” atmosphere of Frederick, the quality of life, and the affordability we’ve found here.
I've been selling real estate in Central Maryland for almost 16 years. Karen has been helping me over the years in different capacities, as an assistant, then as a buyer’s agent. For a year, I managed an office and Karen took over the bulk of the business. It was a great experience for both of us. I managed 90+ agents and saw more contracts come over my desk than the previous 14 years combined!
Now I'm back, running the business and Karen is running the office, and blogging and marketing. With each new year comes a different kind of market and new challenges.
In this present market, we face many challenges with mortgage problems, distressed properties and the credit crunch. I've gotten a nationally recognized certification , CDPE, Certified Distressed Properties Expert, to equip me to help homeowners in distress. I'll be blogging about a lot of these issues and about all kinds of real estate topics.
Karen and I always have something to say! Join us in our online, ongoing conversation about Frederick Real Estate