First Time Home Buyer Tax Credit Extension Could Save You Money
Posted on | November 2, 2009 | 13 Comments
The home buyer tax credit may soon be extended due to the continuing weakness of the economy; therefore, if you plan on purchasing a home in the near future, do it before the end of November in order to reap the benefits of this tax credit; if the tax credit is extended you will be allowed to by a new home up until April 2010.
A home buyer can earn 10% of the price they pay for a home, with a married couple being eligible for up to $8,000; and a single person, or a married person filing separately eligible for up to $4,000. Vacation homes and / or rental properties are not eligible for this tax credit.
While this tax credit is a great benefit of buying a home now, it is not recommended that anyone rush into the home buying process just to earn this credit. Purchasing a home is a process that takes a vast amount of time and research, if one should rush this process to reap the benefits of the tax credit you very well may end up paying much more than you should for a given home.
All this tax credit is an effort to stimulate our economy. The hope is that new home buyers will receive their credit and spend it on something such as new furniture, or a new car, thus putting it back into the economy. A similar even took place when president Obama promised tax payers a large tax refund this past year upon filing taxes.
Unfortunately, with unemployment shooting through the roof, and the economy doing so poorly nearly no one is purchasing homes in order to receive this credit, and those who are will probably not put this money back into the economy, but save it as times are quite difficult.
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Author: Sylvia Wayne
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13 Responses to “First Time Home Buyer Tax Credit Extension Could Save You Money”
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November 2nd, 2009 @ 6:38 pm
I’m hearing it’s going to passed tomorrow, time will tell.
http://www.bloomberg.com/apps/news?pid=20601103&sid=a65ONhTk4C7Q
November 2nd, 2009 @ 7:32 pm
SO IF I DON’T PURCHASE THE HOUSE BEFORE THE END OF NOVEMBER I WOULDN’T BE ELIGIBLE FOR THE EXTENTED TAX CREDIT?
November 2nd, 2009 @ 8:13 pm
I PRAY they pass the extension. I have been WAITING in REAL ESTATE HELL dealing w/ Banks that have gotten millions of dollars from the government…crying that they will go bankrupt or will fail if no help was given to them… now that ME and my HUSBAND who is deployed ACTIVE DUTY NAVY have been waiting on a short sale since the beginning of JULY! We were suppossed to close 9/15/09, the seller’s bank even said it wouldn’t be a problem… then after 9/15 come around and no word we even added earnest money deposit, new pre-approval letter… then they tell us we may just pull teh offer because the bank was not going to get back w/ us any time soon. We then scrambled around for new homes, found one and still went through hell!! Now I just got our offer approved and they’re saying they can’t close until Dec. 21st! I have worked so HARD for that $8K and we could use a little help… I mean… being an uprooted Navy wife is no fun… no real money coming in working way beyond overtime w/ a husband that’s served in IRAQ 3 times now and currently on his 4th deployment. We strive for the best, but MAN can we use a little break… just a little one! (venting felt good!)
November 2nd, 2009 @ 8:15 pm
I am under a lot of pressure. I have an offer that got accepted recently and I feel pressured to sign and buy right away because I don’t want to risk not meeting the deadline of Dec 1st for the tax credit. The realtor is pressuring me saying it is likely it won’t pass. The title company has cashed a $1, 000 already. I have 2 days left to drop the offer and get my money back and with I had purchased due to the tax credit or drop the offer hoping the tax credit gets extended.
November 2nd, 2009 @ 9:19 pm
No, read the article again. If it passes you will be able to purchase a home until April 2010 to get the benefit. I pray that it passes. I’m not in any trouble, but I know people that are and I also hope it passes for the people I don’t know too.
November 2nd, 2009 @ 9:44 pm
You may want to check your numbers again. As far as I’ve seen, there is no difference in the tax credit amount for single or married taxpayers. The only difference is the maximum income allowed to claim the full tax ($75k for singles and $150k for married).
November 2nd, 2009 @ 10:37 pm
The current credit is actually $8,000 for both married couples and individual, or single, buyers who meet the modified adjusted gross income requirements. For married, filing separately, the credit is $4,000.
November 2nd, 2009 @ 11:50 pm
Stressed,
Dont feel preasure or stress, I am a RE Agent in Las Vegas and im very positive the extention will go through. If you will be my Buyer I would comminicate alot with you to help you feel calm, and dont feel preassure to buy something you dont really want to buy. Feel better. Good Luck!
November 3rd, 2009 @ 12:05 am
i earn more than the $95K phaseout for the current bill, but less than the $125K cap on the proposed extension. i am closing this week. would i get the $4K after all if the extension passes?
November 3rd, 2009 @ 12:51 am
Dear Stressed…
So long as you haven’t removed contingencies, you can normally change your mind for any reason within 17 days (at least in the state of California). It sounds like your REALTOR just wants to get the deal done. It’s more than likely to pass. While some may oppose, I haven’t heard anyone actually say its unlikely to pass. That sounds like pressure… no wonder you’re stressed. If it doesn’t feel right, cancel the contract and retain your earnest deposit.
Doug Stephan
November 3rd, 2009 @ 4:18 am
The article states that “a single person” is only eligible for $4,000. Is this true if that person is the only borrower on the loan?
November 3rd, 2009 @ 5:51 am
i have been in my own sine dec 17th 2008 i paid all of my closing cost before i moved in the deal was i should close in a month or two,now it has been 10 months and i still havent closed the deadline is almost here,yet they tell me not to worry and that everything ive paid so far will role over to escrow…am i being punked?
November 3rd, 2009 @ 11:19 am
I am buying an apt with my girlfriend. We are not married. We will pay half of the apt each. We both earn less than $75,000. Should we get $4,000 each or $8,000 each??