Home Buyer Tax Credit

Many people asked for it, now here it is: the Senate has tentatively agreed to extend the existing $8,000 tax credit for first-time home buyers and also offer a new $6,500 credit for existing homeowners who have lived in their current residence for a consecutive five-year period in the past eight years. The deadline for using the credit requires that purchase contracts are signed by April 30 and closed by June 30. The tax credit for existing home buyers will begin on December 1 of 2009.

There still is deliberation to increase the tax credit to $15,000 and to all home buyers. This subject is being carefully considered and new developments may occur at any time. Keep in mind, this would be the third iteration of a home buyer tax credit that has been in place since mid-2008. As long as the home buyer tax credit helps to grow the economy and strengthen the housing market, it may be kept around for some time.

CLICK HERE for more details about the tax credit extension.