Proposed Home Buyer Tax Credit Offers $6500 to Current Homeowners Who Purchase a New House

While the current $8000 home buyer tax-credit is exclusively for first-time home buyers, the proposed extension would allow current homeowners to get a tax credit as well.

PR Newswire

posted: 19 DAYS 19 HOURS AGO

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ST. LOUIS, Nov. 6 /PRNewswire/ -- Financial blog, ChristianPF.com released an article discussing the proposed extension and expansion of the tax credit for home buyers. According to the article, "Senators agreed to extend the existing tax credit for first-time home buyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years."

The proposed bill would extend the current $8000 tax credit for new home buyers from its current end date of November 30th, 2009 to April 30th, 2010. "The Senate agreement stipulates that buyers must have a sales contract on a house by April 30 to be eligible, but it gives them an additional 60 days to close the purchase. Looked at one way, the effective deadline of the credit under this agreement is actually the end of June."

A few more points from the article ...

-- You can't use the cash to buy a vacation home. Only primary residences are eligible. -- Single filers making more than $125,000 and married couples making $225,000 or more aren't eligible. -- Also you must be at least 18 years old to be eligible.

-- The current tax credit has cost taxpayers about $8 Billion. BusinessWeek estimates that the new one will cost us $10.8 billion.

Read the full article: http://www.christianpf.com/6500-home-buyer-tax-credit-extended/

SOURCE ChristianPF.com

2009-11-06 12:01:00