Home Buyer Tax Credit Passes!

The House has just voted overwhelmingly to pass the bill extending and expanding tax credits for prospective homebuyers (it was already passed by the Senate). President Obama is expected to sign the bill on Friday.  Per NAR, the provisions of the new tax credit legislation are:

• Credit available for purchases before May 1, 2010.
• Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.
• Credit remains at $8000 for first-time purchasers. No change to definition of first-time purchaser.
• New $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010.
• Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
• Applies only to home purchases of $800,000 or less for repeat buyers
• Applies only to the purchase of primary homes – not second homes or investment properties
• Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
• The tax credit is not retroactive.
• New anti-fraud limitations.