I've done a lot of digging and thought I'd send out what I've found. So here goes:
The House has passed the modified version of the stimulus bill, and like the initial version last month the vote split down party lines with no Republican support. Now that the Congressional record has been updated with the text of the new bill, we can take a closer look at the tax credit for home buyers. According to the updated legislation:
- Tax credit of 10% of the purchase price up to $8,000 *NOTE: This one does not have to be repaid
- Credit only valid for first-time home buyers purchasing a principal residence *NOTE: If you haven't owned a home in at least 3 years, you're also included!
- Credit can be applied to purchases made from January 1, 2009-December 1, 2009
- Home purchased must be principal residence for 3 years or credit will be recaptured
- Only applies when taxable income for the year is less than $75,000 (file single return) or $150,000 (file joint return)
Good news for buyers who purchased a new home already this year - you may still qualify for the $8,000 tax credit. And while the extra $500 might not be that exciting, we won't have to repay any of the credit like in the housing recovery plan that passed last summer.
Here is a visual breakdown of the benefits and how they differ from last year's bill for homebuyers.
*Image Credit: Missy Caulk
If you know of anyone who's still renting and wants to buy a home, let me know and I'll help them out. Hope you're all having a great week!
- Jay Silver
Jay Silver | Northwest Realtor & People Connector | DiscoverNorthSeattle.com
