Cash for Clunkers is gone. Now Congress has another deal for you: Buy a home before May 1, 2010 and collect up to $6,500 from the government if you’re a move up buyer. If you’re a first-time home buyer, get up to $8,000 as the credit has been officially extended.
As part of the government’s efforts to encourage people to spend money to help revive the economy, the House voted 403-to-12 yesterday to expand a popular tax credit for home buyers. The bill, which also extends unemployment benefits and expands a tax break for money-losing businesses, now goes to President Obama, who plans to sign it today.
First-time home buyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package. But with that housing program scheduled to expire at the end of November, the House voted to extend it into the spring – and to expand it to many people who already own homes. Too bad they didn’t extend it into the purchase season. Can’t complain I guess.
First-time home buyers – or people who haven’t owned homes in the previous three years – could get up to $8,000. Buyers who have owned their current homes at least five years would be eligible, subject to income limits, for tax credits of up to $6,500. To qualify, buyers have to be in a purchase agreements by April 30, 2010 and close on or before June 30, 2010.
The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for single tax filers with annual incomes above $125,000 and for joint filers with incomes above $225,000.
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