Extending the Home Buyers Tax Credit – Almost There!

The extension and expansion of the homebuyer tax credit is the pending business in the Senate.

After a long week of negotiation on the credit, an agreement on the scope of both expansion and extension has been reached. The extension is part of a larger bill that has not yet gone to a vote, however. A Senate vote on the underlying bill will occur in the Senate during the week of November 1.

The package will then go back to the House. The House is expected to accept the Senate amendments, vote on the package and send it to the President for signature.

The underlying bill is an extension of unemployment benefits. Other provisions in the bill include expansion of the net operating loss carryback rules, new requirements for some tax return preparers and noncontroversial provisions that “pay for” these changes.

The agreement on the extension and expansion of the credit is as follows:

• 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.

• 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.

• New anti-fraud limitations are imposed.

The White House has indicated that President Obama will sign the legislation.

***—***

You can make a difference and take the following actions:

Call Your Senator- Click to Call

Take Action

Source: NAR’s The Washington Report


Share the wealth:

Home Buyer Tax Credit Gets New Life

Plan will remain until the end of April 2010.

Senate negotiators reached a tentative deal to extend a tax credit for first-time home buyers, but its passage remains uncertain.

The agreement would extend the existing credit for first-time home buyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all home buyers who have been in their current residence for a consecutive five-year period in the past eight years.

The new provisions are aimed at broadening availability of the credit beyond first-time buyers and giving the weakened real-estate market a bigger boost while preventing real-estate investors from benefiting.

Many property experts have cited the credit as a reason for signs of recovery in the housing market in recent months. But that recovery was somewhat undercut by the September drop in new-home sales reported Wednesday.

The credit would be extended from its current expiration date of Dec. 1 to all contracts entered into by April 30, and closed before July 1. It is expected that income limits on people claiming the credit would be increased to $125,000 for singles and $250,000 for couples, from the current $75,000 and $150,000, aides said. The credit phases out for people making more than those amounts.

While Senate lawmakers appear to have reached a deal on the substance of the tax credit, they are still at odds over how it would be brought to the Senate floor. Senate Majority Leader Harry Reid (D., Nev.) hopes to add it to a bill currently on the Senate floor to extend federal unemployment insurance benefits. But agreement on that hasn’t been finalized.

While Senate Republicans are likely to support the measure, House Democrats have raised concerns that it carries a high cost to the government. The Internal Revenue Service is examining the program for alleged abuse.

Original article by Corey Boles and John D. McKinnon


Share the wealth:

Extend the Home Buyer Tax Credit – Act Now!

Watch the NAR video above regarding the Home Buyer Tax Credit.

Whether you’re a Realtor or a home buyer, you can make a difference!  Watch the video above to hear the President of  NAR and various real estate professionals share their thoughts and stories on the Home Buyer Tax Credit.

Then, send your own message to Congress.

Below is the letter posted on the website to Take Action.

Number of people who have taken action (as of today): 136,634

—

Dear Decision Maker,

As a Realtor and a constituent, I can assure you that the $8,000 first-time homebuyer tax credit has definitely been a success. Homebuyer interest and housing sales increased almost as soon as the ink was dry on the tax credit legislation. Today’s lower prices and interest rates appeal to consumers, but it’s been the tax credit that has attracted people to open houses and to homeownership.

That progress could grind to a halt sooner than you think. Congress must act NOW to extend the credit through 2010. Otherwise, uncertainty will return and the market might again be frozen — possibly as soon as October.

A homebuyer is eligible for the tax credit only if the home is “purchased” before December 1, 2009. That means that buyers have to find a house, complete a contract, satisfy any contingencies, secure financing and go to closing by November 30. Accomplishing those tasks by November 30 will become more difficult with every passing day. In today’s market, it generally takes between 45 and 60 days to go from contract to closing.

The market has improved, but it has not yet fully corrected itself. The credit needs to be extended for an additional period of time and expanded in order to build upon the progress that’s been made. Uncertainty about the future of the credit will dampen consumer demand. The best way to assure continued housing activity is to extend and expand the credit and to do that NOW.

We can’t wait until late in the year to see what happens. Consumers will drop out soon if they can’t predict what’s in their future. Please act NOW to extend and expand the credit through 2010.

Share the wealth:

Realtors – Share your story and win $$$

2009 REALTOR® Party Video Contest:

Expand and Extend the Home Buyer Tax Credit

We want to hear your story — and the story of your home buyers who have taken advantage of the tax credit to purchase their first home.

So REALTORS^® get our your video cameras! We are looking for a three-minute video (or less) that makes the case in your own words why we need to expand and extend the Home Buyer Tax Credit.

Watch this quick video below to help you get started.

What could you win?

The REALTOR^® who submits the winning video will receive a $500 American Express gift card. In addition, your video will be featured at NAR’s Annual meeting in San Diego in November. Two runners-up will receiver Flip UltraHD Camcorders.

Contest given by the Realtor Action Center.

Share the wealth: