Homebuyer Tax Credit Extension & Expansion

Okay, so I know that many of you homebuyers were frantic whether or not you were going to find a home in time to utilize the first time homebuyers tax credit. The new legislation that was passed, pushed this tax credit to April of 2010. President Obama, signed the law on friday known as "Worker, Homeownership and Business Assistance Act of 2009″. This law has extended the first-time homebuyer tax credit in a dismal time when unemployment has reached as high as 10.2%.

This tax credit has expanded to 10% of the purchase price of the property and must be in contract before midnight on April 30, 2010. According to the IRS, "the credit has provided more than 1.4 million to taxpayers as of September 2009.

The credit is now offered to those with incomes up to $125,000. Anyone who does not fall into this category is not eligible for the tax credit.

http://backyardwealth.files.wordpress.com/2009/10/8000_tax_credit.jpg

This bill was passed by The House of Rep.'s on Sept, 2009…331 votes for and 83 against…But it's funny how they keep extending the date. Of course the tax credit is going to incentivize people to buy homes, the government clearly wants buyer activity to help clear up the foreclosure mess. They wanted to stir up a lot of activity so buyers thought they didn't have all the time in the world to purchase, and just as we came down to the wire they extend the tax credit. Funny don't you think?