It is finally official. The homebuyers' tax credit has been extended to April 30, 2010.
President Barack Obama approved the extension as part of a $24 billion economic stimulus bill signed Friday. The bill also includes an extension of unemployment benefits to the longtime jobless and tax credits for some businesses.
The housing tax credit portion of the bill extends the $8,000 tax credit for home buyers who are purchasing their first home from the current November 30 deadline and expands the program to offer a credit of $6,500 to other homeowners who have lived in their current home for at least five years and are seeking to relocate.
Another modification to the original legislation raises the income limits for program participation from $75,000 for a single purchaser to $125,000 and from $125,000 to $225,000 for a couple. There are also credits available on a diminishing basis above those income limits.
The bill was passed by the Senate on Wednesday evening and by the House on Thursday. Both bodies acted in a bipartisan manner which has seldom been seen this year. The Senate passage was unanimous; the House voted 403 to 12 for the bill.
HOWEVER, we need to discuss the "in-between the lines" type of things in this extension. For instance, the increased AGI limitations (from $75,000 to $125,000) take effect as of the DATE OF ENACTMENT and are NOT retroactive to January 1.
If you have purchased, or are looking to purchase, we need to get together to talk about the credit and your tax situation.