Tax credit program turns lookers to buyers
Posted : Nov 8, 2009 8:06 PM
Updated: Nov 9, 2009 4:22 AM
The federal government has expanded the home buyer tax credit program. It has increased the credit amount, increased the maximum income a home buyer can earn, and added current home owners as potential qualifiers.
The program is designed to turn lookers into buyers.
A number of open houses in Colorado Springs Sunday afternoon had a steady stream of potential home buyers.
"A lot of people were, 'Well we'll just wait and see what the economy does before we buy,' and this has been a perpetuating effect to jump start the economy," says Nancy Wile, who's been a real estate agent in Colorado Springs for 12 years.
Wile says she worries about the government extending the program.
"Who's going to write that check for that $6,500 without an offsetting tax ramifications?" says Wile.
Some people say it gives them a reason to buy now with an added incentive coming in the near future.
Here are the changes to the program:
- First-time home buyers can now have an income of $125,000 (single) and $225,000 (joint filers).
- They can now earn a tax credit up to $8,000.
- The deadline to close or to have a signed contract on a house is April 30, 2010.
- Current home owners can earn a tax credit of up to $6,500, as long as they've lived in their current home for five years.
The home buyer tax credit program has many other rules and restrictions to research. It is best to talk with a tax expert to see if you qualify.
Tax Credit at Nov 9th 2009 8:48 AM
This seems so unfair! We have been in our house for just three and half years. My husband is in the military and we can not sell our home without taking a huge loss. I think this tax credit will exclude a lot of military families that could really use the tax credit. Our home are not worth what we paid and the Army is trying to move us.