Key Features of the Extended Tax Credit “December 1 – April 30, 2010″

[1] First Time Buyer – Amount of Credit

- $8000 ($4000 married filing separate)

[2] First Time Buyer – Who is eligible?

- Purchaser may not have had interest in a principal residence for 3 years prior to purchase.

**[3] Current Homeowner – Amount of Credit (NEW)

- $6500 ($3250 married filing separate)

[4] Effective Date – Current Owner

- Date of Enactment

[5] Current Homeowner – Definition for Eligibility

- Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years

[6] Termination of Credit

- Purchases after April 30, 2010

[7] Binding Contract Rule

- So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close

[8] Income Limits

- $125,000 for single people + $225,000 for those that are married; Additional $20,000 phase out

[9] Limitation on cost of purchased home

- $800,000 Effective Date of Enactment

[10] Purchase by a Dependant

- Ineligible Effective Date of Enactment

[11] Anti-Fraud Rule

- Purchaser must attach documentation of purchase to tax return

The Senate has approved an extended and expanded tax credit for home buyers

On Wednesday the senate passed an expanded tax credit.  The First Time Home Buyer Tax credit has been seen as a huge success and its expiration on November 30 has had many feeling nervous about what its end will mean.  Those fears can now be put aside.  While the bill still has to pass through the House, which it is expected to do next week, is was overwhelmingly approved by the Senate in a 98-0 vote.

What is new and improved with the extended and expanded tax credit?  The new and improved tax credit is still for first time home buyers but will also include home buyers who have owned their current home for 5 years or more.  The credit is up to for $6,500 for these current homeowners and remains at up to $8,000 for First time home buyers or home buyers who have not owned a home for the past three years.  The tax credit  is income restricted, an individual cannot make more that $125,000 annually and a couple cannot make more than $225,000 jointly.  A home must be  a primary residence and valued at $800,000 or less.  Buyers must have a property under contract to purchase by April 30, 2010, and the property must close by June 30, 2010.

The passing of this extended, expanded tax credit is good news on the real estate front and is expected to be the last tax credit offered for a long time to come.

Help spread the word on this great opportunity.  People can take advantage here in Tysons Corner, McLean, Vienna, Arlington or all across the country.