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Office:(818) 349-9997 x293 Cell: (818) 535-6493
email me at: dgonre@aol.com
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Dawn Gonzales, REALTOR®
Setting the Highest Standards in Real Estate!
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July 1, 2010
Home buyer credit extension heads to Obama
Congress passed a bill this week extending the deadline to close escrow and qualify for the federal home buyers tax credit. President Obama is expected to sign the bill extending the deadline to Sept. 30, 2010, instead of its original June 30 deadline.
The bill extends the deadline to close escrow for home buyers who entered into a home purchase contract by the April 30 deadline. First-time buyers may be eligible to receive up to $8,000 and qualified existing homeowners may receive up to $6,500 if the home buyer closes escrow by Sept. 30.
Home buyers entering into sales contracts May 1 or later are not eligible for the federal tax credit.
June 17, 2010
Senate approves home tax credit extension
(AP) — WASHINGTON - The Senate has approved a plan to give homebuyers an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.
The move by Senate Majority Leader Harry Reid would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.
The proposal would only allow people who already have signed contracts to finish at the later date. About 180,000 homebuyers who already signed purchase agreements would otherwise miss the deadline.
The $8,000 Tax Credit extension and expansion has been approved and signed by President Obama.
First-Time Home Buyers: Can be eligible for a tax credit of up to $8000. You can not have owned a home within the last three years.
Current Homeowners: Can be eligible for a tax credit up to $6,500. If you have owned and occupied a primary residence for the last five consecutive years during the last eight years.
The bill also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000 in both instances.
Deadline: In order to qualify for the credit, all Contracts (Purchase Agreements)
need to be in Escrow no later than April 30, 2010 and CLOSE ESCROW no later than June 30, 2010.
Under additional provisions included in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The legislation maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.
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