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Recap of new Extended Homebuyer and Homeowner Purchase Tax Credit!

Here's a good recap of the hopefully to be exteneded NEW Homebuyer and Current Home Owner Purchaser tax credit (The President still has to sign this).

The homebuyer credit has been voted by congress to be extended, beginning December 1, 2009 and expiring on April 30, 2010. The details are the following: (1) First-Time Buyers a. $8,000 tax credit ($4,000 for married couples filing separate) b. Must not have owned a property in the last three years c. Expiration of credit = April 30, 2010 d. Binding Contract Rule = Contract executed by April 30, but can close as late as July 1, 2010 e. Income Limits = $125,000 (single) and $225,000 (married couples) with $20K phase out f. Purchase Price Limit = $800,000 (2) Subsequent Purchaser a. $6,500 tax credit ($3,250 for married couples filing separate) b. Must not have owned a property in the last three years c. Expiration of credit = April 30, 2010 d. Binding Contract Rule = Contract executed by April 30, but can close as late as July 1, 2010 e. Income Limits = $125,000 (single) and $225,000 (married couples) with $20K phase out f. Purchase Price Limit = $800,000 For a detailed breakdown of the current tax credit and the new, access the following link: http://www.realtor.org/fedistrk.nsf/files/government_affairs_tax_credit_ext_chart_110409.pdf/$FILE/government_affairs_tax_credit_ext_chart_110409.pdf

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Senators agree to extend home-buyer tax credit

By Stephen Ohlemacher, Associated Press Writer WASHINGTON — Senators agreed Wednesday to extend a popular tax credit for first-time home buyers and to offer a reduced credit to some repeat buyers. The tax credit provides up to $8,000 to first-time home buyers but is set to expire at the end of November. The Commerce Department said Wednesday that new home sales fell 3.6% in September, and some industry representatives blamed uncertainty about the tax credit. Senators agreed to extend the existing tax credit for first-time home buyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev. The tax credits would be available to home buyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, according to a summary of the legislation being circulated among lawmakers. Senators were still negotiating the expansion of a separate tax credit that lets money-losing businesses get refunds for taxes paid in previous years, providing them with an immediate source of cash. Senators in both political parties were hoping to add both tax provisions to a bill that would give people running out of unemployment insurance benefits up to 20 more weeks of federal aid. The Senate could vote on the overall bill as early as Thursday, but lawmakers were still haggling over several unrelated amendments Wednesday evening. Popular bills like the one to extend unemployment benefits often attract amendments that would have a difficult time passing on their own. Republicans were demanding that they be given a chance to offer amendments to restrict federal aid to the beleaguered community activist group ACORN and on requiring that people receiving unemployment insurance be processed through E-Verify, an Internet-based system that employers use to check on the immigration status of new hires. Majority Democrats have refused to add the amendments. If the Senate passes the bill, it would go to the House, which passed a similar bill extending unemployment benefits last month. House leaders have also said they support extending the tax credit for home buyers. Sen. Chris Dodd, D-Conn., has been negotiating for several weeks with Sen. Johnny Isakson, R-Ga., to craft an extended tax credit for homebuyers that would pass the Senate. Lawmakers didn't release a cost estimate for extending the tax credit, though similar proposals were projected to cost about $10 billion. Industry representatives said uncertainty about the tax credit is hurting new home sales. September's decline was the first since March. It takes 45 days to 60 days to close on a house, making it unlikely a sale made today would be consummated by the end of November, said Lucien Salvant, spokesman for the National Association of Realtors. "Buyers right now have an incentive to hold off, not knowing whether the credit will be extended," Salvant said. About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit. The tax credit for money-losing businesses is a favorite among Republican lawmakers. Businesses could get tax refunds by using losses from 2008 and 2009 to offset taxable profits made in the previous five years. Under current law, they can only offset profits from the previous two years. The provision would help a variety of industries, including retailers, manufacturers and home builders, though it's expensive. "It's clearly a way to put cash in the hands of some major economic players," said Clint Stretch, a tax policy expert at Deloitte Tax. A similar proposal that was ultimately dropped from the economic stimulus package enacted in February would have cost nearly $20 billion over 10 years. Lawmakers are working to reduce the price tag. Because people are so strapped for cash, this is a good way to get refunds when businesses need them for operating expenses, said Rachelle Bernstein, vice president and tax counsel for the National Retail Federation. Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. For details on how you can own your own Texas Home go to come visit us and read our special reports, view our properties available and you can even order your own Dream Home.

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Homebuyer's Tax Credit Extended: Great News for Military Families

Homebuyer's Tax Credit Extended: Great News for Military Families
The 2009 Homebuyer's Tax Credit has been extended for military families until April 30th, 2011.
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Military.com | by Kelly Johnson
In an effort to spur economic growth and home ownership, President Obama signed the Worker, Home Ownership, and Business Assistance Act of 2009 into law on Nov.6. 2009. And, a special provision in this new legislation will help military families take advantage of the tax credit for at least two more years. Now, military home owners won’t have to rush to close on a new home in order to be eligible for the $8,000 tax credit.
This bill's extension for military families, and active-duty servicemembers currently living overseas, is April 30, 2011 -- one year longer than civilian home owners’ extension --  and will also help financially strapped military personnel by making mortgage payments tax deductible.
The new law extends the first-time homebuyer credit for individuals on "qualified official extended duty" outside the U.S. who made home purchases before May 1, 2011 (or July 1, 2011, for taxpayers with binding contracts).
Qualified official extended duty is defined as duty outside the U.S. for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010. And, in order for married servicemembers to qualify for this extention, they must have served overseas for at least 90 days in 2009.
Current home owners will also benefit from the newly signed law. If they have been in their principal residence for five consecutive years home owners will have until April 30, 2010 to buy a new home and receive a $6,500 tax credit.
Charles McMillan, president of the National Association of Realtors, and a proponent of this bill, stated on the organization’s website that the original home buyers tax credit bolstered the national housing market and will continue to do so if extended.
Click here to find out more!
“This important incentive is helping to stabilize the housing market, stimulate the economy, and create new jobs in communities all across our great nation,” said McMillan in a NARS press release.
“Extending and expanding the home buyer tax credit will enable more families to take advantage of low interest rates and affordable prices to invest in their future through home ownership,” McMillan added.
Additional provisions include expanded income limits for single and married home owners. Previously, single home buyers couldn’t make more than $75,000 to be eligible for the tax credit — the limit is now $125,000. And, the income limit for couples has been raised from $150,000 to $250,000. However, you’re not eligible for the tax refund if the purchase price of you new home is $800,000 or more.
Speaker Nancy Pelosi praised the legislation stating on her website that it has “already been successful” and that the new provisions will help more American home owners and will promote further economic recovery.
“We've seen the positive impact -- the steadier foundation in our housing market. Most significantly, we've watched a new generation of Americans start living out their dream of home ownership and economic security,” continued Pelosi.

Tim
www.OwnATexasHome.com

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