New Bill Introduced to Amend the Tax Rebate for First Time Home Buyers
There is a new Bill - H.R.2801 or the Home Ownership Moves the Economy (HOME) Act of 2009 that was introduced by Rep. Howard Coble, Republican from North Carolina, on June 10, 2009. It is currently being reviewed by the House Committee on Ways and Means.Basically, this Bill will amend the Internal Revenue Code to:
1. Extend the first-time home buyer tax credit to all individuals who purchase a principal residence. Currently, only first-time home buyers may qualify for the $8000 Tax credit. The definition of a first time home buyer under the current program states that you cannot have owned a primary residence in the past 3 years. This credit still only applies to those buying a primary residence
2. Extend such credit and the waiver of recapture requirements for such credit through December 31, 20103. Repeal the limitation on such credit based on modified adjusted gross income. The current guidelines read that as a single tax payer, your income cannot exceed $75,000 to receive the full tax credit. A reduced credit may be claimed up to the phase out income limit of $95,000. For married filing jointly, the income guidelines are $150,000 phasing out at $195,000. This would enable those individuals that earn higher incomes to also receive the tax credit.
This bill is still in its infancy and has a long way to go before it is passed. If you are a first time home buyer, I would advise you not wait to see if this bill will be passed. The current $8,000 tax credit for first time home buyers will expire on November 30, 2009. The home you purchase must have the transaction closed by this date. If you wait, you may find yourself in a position where there is no way the closing on your home can take place by then and you will lose out on the tax rebate.
You can track the progress of this BILL at: http://www.govtrack.us/congress/billtext.xpd?bill=h111-2801
Many may not perceived it but it is actually the best time to purchase a new home because of the advantages it offers such as lower price, lower interest rates, tax savings, more choices etc. So instead of wasting money in renting a place, buying something that can be an equity is far more better option.
ReplyDelete