$8000 Home Buyer Tax Credit extended?

giving-money

Many people want to know if the existing $8000 first time home buyer tax credit that expires on December 1st, 2009 will be extended.

This is a good question.

As it stands, if you don’t take advantage of it by November 30th, you will not get the tax credit. If you are still trying to take advantage of the existing $8000 first time home buyer tax credit, the time to act is now.

Here is the good news! There are a five bills that have been introduced to Congress to extend the first time home buyer tax credit.

S. 1230: Home Buyer Tax Credit Act of 2009 — introduced on June 10th, 2009. This Act proposes to replace the current tax credit for first-time homebuyers with a one-time credit for 10% of the purchase price of a principal residence, up to $15,000. Requires repayment of credit amounts if the taxpayer sells or fails to occupy the residence within 24 months after the date of purchase.

H.R. 2801: Home Ownership Moves the Economy (HOME) Act of 2009 — introduced on June 10th, 2009. This Act proposes the following:

* extend the first-time homebuyer tax credit to all individuals who purchase a principal residence (currently, only first-time homebuyers as so defined);
* extend the credit and the waiver of recapture requirements for such credit through 2010 (expiration would be moved to January 1st, 2011);
* and repeal the limitation on the credit based on modified adjusted gross income.

H.R. 2606: Home Buying Credit Expansion Act – introduced on May 21st, 2009. This Act proposes the following:

* extend the first-time homebuyer tax credit to all individuals who purchase a principal residence (currently, only first-time homebuyers as so defined);
* extend the credit and the waiver of recapture requirements for such credit through 2010 (expiration would be moved to January 1st, 2011).
* and expand the election to treat a purchase of a principal residence as made in a prior taxable year for purposes of such credit.

H.R. 2619: To amend the Internal Revenue Code of 1986 to temporarily expand the credit for first-time… – introduced on May 21st, 2009. This Act proposes the following:

* to allow until June 30, 2010 a first-time homebuyer tax credit for all purchasers of a principal residence (not just first-time homebuyers);
* and provide a refundable tax credit, up to $3,000, for the costs of refinancing a principal residence.

H.R. 2655: To amend the Internal Revenue Code of 1986 to expand and extend the first-time homebuyer credit – introduced on June 2nd, 2009. This Act proposes the following:

* extend the first-time homebuyer tax credit to all individuals who purchase a principal residence (currently, only first-time homebuyers as so defined);
* extend such credit and the waiver of recapture requirements for such credit through 2010;
* and expand the election to treat a purchase of a principal residence as made in a prior taxable year for purposes of such credit.

On September 8th, Congress will reconvene and we will see if any of these (or a hybrid version of some/all of them) will pass.

Here is the bad news! There is less than 90 days for Congress to extend the first time home buyer tax credit and there are major issues (i.e. healthcare) that may take priority and push the tax credit to the side.

For now, we can either wait and see if the intense lobbying by groups such as the National Association of REALTORS® and National Association of Home Builders can sway our lawmakers to believe that this is a priority item or we can contact our local senator or representatives’ offices and tell them ourselves.

Original article by Steve Lines.

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