Tax Credit Extension

There are reports that the US Senate is trying to extend the Tax Credit until April 30th 2010. The extension will include raising the income limits. For singles the limit will be 125k, and for couple it is be 250k. A new advantage will be a $6500 tax credit for home buyers who have lived in their current home for at least 5 years, and buy a new primary house. This new bill has support from the Senate and the House. And based on NAMB stats, they believe the 8k tax credit has created 200k new jobs, slow foreclosures, and stabilize home prices.

This should be a no-brainer for the Senate and House. It will be even better if the moratorium on the HVCC rule will get passed. Combined they will make the housing market so much better for so many people.

Also, this is a true credit; it is not a tax deduction. If you bought the home this year and closed by 11/30/09, 8k will added to your normal refund. If you owe money, the full 8k will be added to that amount, and any positive difference will be given back to you.


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