As a follow-up to yesterday’s post, and for those who like charts and graphs, here is the National Association of Realtors’ summary chart of the newly extended and expanded Home Buyer Tax Credit.

Download a high-res copy here

Joe Spake is a Memphis, Tennessee based Consultant, Real Estate Broker, and Blogger. Call 901.214.5563 for a consultation or click to make a social connection.
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Yesterday, President Obama signed an extension and expansion of Home Buyer tax credit program.  Here is an overview of the new program:

First-timers: Extend the $8,000 homebuyer tax credit to contracts signed by April 30 and closed by June 30. Previously was set to expire after Nov. 30. First-time homebuyer is defined as someone who has not owned a residence within the past three years. The credit is for 10% of the home purchase price up to $8,000

Existing owners: $6,500 credit for those who buy a home after living in their current house at least five of the last eight years.

Extension: Contracts signed by April 30 and closed by June 30 are eligible

Home requirement: principal residences priced at $800,000 or less.

Income limits: Have been raised -Single 125,000, Joint $225,000 for joint filers.

Cost: $10.8 billion over 10 years, according to the Joint Committee on Taxation.

Primary Residences Only: No second home or investment properties are eligible for the tax credit

Members of the Armed Forces: For members of the Armed Forces deployed on duty outside the United States, the tax credits are extended to May 1, 2011 (must close before July 1. 2011) Must be deployed outside the U.S. for at least 90 days between Dec 31, 2008 – May 1, 2010.

Fraud Prevention: “Fraud prevention” measures have been implemented. The tax credit can not be claimed by anyone under 18 years of age,  Also, a “properly executed copy of the settlement statement used to complete such purchase” must be attached to the tax return claiming the credit. This probably means the standard HUD-1 Settlement Statement, properly executed.  ~I am not an attorney or CPA, so I suggest you consult both the closing attorney and your tax advisor if you have questions about the credit and applying for it.

Below are links with commentary from some of the best known and most read RE bloggers.  Read what they have to say before breaking out the champagne. A big hat tip to all.

Why the Extended Home Buyer Tax Credit is a Slap In the Face from http://agentgenius.com

More on Tax Credit from http://bubbleinfo.com

Do you qualify for a homebuyer’s tax credit? It’s not just for first timers anymore… from http://blog.frontdoor.com

Obama Signs Homebuyer, Jobless Bill Assistance Memphis Daily News

Home Buyer Tax Credit Passes Both House and Senate (Update: Has been Signed by President) from the Phoenixrealestateguy.com

Congress extends and expands the home-buyer’s tax credit from the Bloodhound Blog

The Real Estate Bloggers $8000 New Homebuyer Credit, $6500 Old Home buyer Credit

Joe Spake is a Memphis, Tennessee based Consultant, Real Estate Broker, and Blogger. Call 901.214.5563 for a consultation or click to make a social connection.
If you enjoy this blog, please subscribe to the RSS Feed. 

If you use Google+, I have just started a brand new business page. Visit it HERE.