| Along with the current market situation that is highly in | | | | are quite high. |
| favor of buyers, the US government is also offering | | | | As of now, the status on First Time Home Buyer Tax |
| citizens First Time Home Buyer , as an incentive to | | | | Credit, is that it expires on 1 Dec 2009. So if a property |
| boost the real estate market. You can now buy | | | | has not been locked down in escrow by the end of |
| luxurious houses for just about half of what you would | | | | Sep 2009, there is a very high probability that you will |
| have had to pay in 2005, and the market is predictably | | | | miss the deadline of 1 Dec 2009, therefore making |
| witnessing a fair number of bidding wars to take | | | | yourself ineligible for the tax credit. All relevant |
| advantage of the situation. | | | | transactions must be completely done and dusted by 1 |
| Government Incentive for the First Time Home Buyer | | | | Dec 2009. If you assume that the tax credit will be |
| For the first time home buyer, the US government is | | | | applicable if the procedure is in any other status other |
| offering a tax credit of $8000, which is refundable. This | | | | than complete, then you assume wrong. It has to be |
| is available for home buyers who buy before Dec 1, | | | | completely closed by that date, or else you don't get |
| 2009. | | | | the credit. |
| This is what the First Time Home Buyer Tax Credit | | | | Proposed Extensions to the First Time Home Buyer |
| specifications look like: | | | | Credit |
| - The home you buy should be the first home you | | | | In 10 June 2009 a bill was introduced to extend the |
| have owned in 3 years. | | | | First Time Home Buyer Tax Credit. The bill did not |
| - You must necessarily close your purchase by the 1st | | | | receive much attention then because people were |
| of December, 2009. | | | | apparently not too concerned about tax credit expiring |
| - The home you purchase must be your principal | | | | soon. But now that the deadline looms near, a lot of |
| residence. | | | | renewed interest can be expected in the tax credit |
| - Income restrictions are at the rate of $75,000 (p.a) | | | | situation. |
| for a single person and $150,000(p.a) for a married | | | | The new bill, H.R.2801, proposes these modifications on |
| couple. | | | | the current. |
| What this means, for all intents and purposes, is that | | | | - Extend the tax credit deadline from 1 Dec 2009 to 1 |
| people who making under $75000 per year in taxable | | | | Jan 2011. |
| income or married couples making under $150,000 | | | | - Remove requirements of being a first time home |
| taxable income will get a 10% credit on the purchase | | | | buyer; instead leave it open to all home buyers |
| rate of the home. The price is capped at $8000. | | | | purchasing a residence. |
| You do not have to wait till the end of 2009 to get the | | | | - Completely remove income restrictions. |
| credit, because you can easily amend your returns for | | | | The new act will be called Home Ownership Moves |
| the year 2008, moving the credit to the 2008 taxes | | | | the Economy Act (HOME) of 2009. If the act is |
| that you have filed. | | | | passed some competition at least will be relieved in the |
| If you are buying a house with a long term perspective | | | | market place, because people may not feel the need |
| in mind, now is the best time in the market where you | | | | to push for closing a deal by 1 Dec 2009 and they can |
| can buy at low rates. The chances of making a profit | | | | plan their decisions more wisely. |