Homebuyer Tax Credit Passed by Congress

According to the National Association of Realtors, the Homebuyer tax credit has not only been renewed, but extended as well.  As of last Thursday, November 5, Congress has passed the legislation and it is expected to be signed into law by President Obama. 

The current Homebuyer Tax Credit enacted in February 2009 and set to expire on November 30, 2009, allowed a tax credit of $8,000 for married couples ($4,000 for married filing separate) making less than $150,000 with a phase out plan for those making above the income limits.  The limit for a single person is $75,000.  The new legislation extends the credit through April 30, 2010 and also increases the income limits to $225,000 for married couples and $125,000 for single people with a phase out above those limits.  Under the legislation, a first time homebuyer "may not have had an interest in a principal residence for three years prior to purchase."  A principal interest can extend beyond a home to include condos, manufactured homes and even an RV if it was a principal residence. 

There is also great news in this legislation for existing home owners! There is a $6,500 tax credit available for married couples ($3,250 for married filing separate) making less than $225,000.  The limit for a single person is $125,000 with a phase out above those limits.  In order to qualify for the current homeowner tax credit, the homeowner "Must have used the home sold as a principal residence consecutively for five of the previous eight years." A binding contract must be written on a property before April 30, 2010 and the homebuyer will have until July 1, 2010 to close the transaction.   The tax credit will be claimed on tax return and will not be a part of the closing process.

To look at homes in Conway, Arkansas or in Faulkner County, Conway County or Perry County, contact a Real Estate Agent at Century 21 Dunaway & Hart, Inc today.  To look at homes, check out home listings in central Arkansas, watch our television show, or read our Central Arkansas Homes Magazine.  You may also call our office at 501-327-2121 or 800-490-0021 to set up a private showing today.