This Ain’t Scary: Tax Credit Extension AND Expansion!!!

Filed Under Finance, Taxes, buying or selling a home, buying or selling a home in Portland Oregon, mortgages · Tagged: , , ,  

HAPPY HALLOWEEN!!!!

This is definitely NOT scary news!!  This morning, the $8000 tax credit extension was extended and expanded for first-time home buyers AND repeat home buyers. This is the tentative plan, but not official until the government releases the documents with all of the fine print. Here’s the new tax credit deal the Senate settled on this morning:

The $8,000 first-time home buyer tax credit would be extended (it was set to expire November 30) for home buying contracts that are finalized by April 30, 2010 and close before June 30, 2010.  And, remember this is a “credit” not a “deduction”.
A new $6,500 tax credit is available to some existing homeowners who lived in a home for a consecutive 5 years out of the past 8 years.
This is very exciting news and definitely takes the pressure off *first-time buyers* (anyone who has not owned a home in 3 years).  I can’t wait to hear more about the $6,500 tax credit that will be applicable for homeowners who have lived in their home for 5 consecutive years!  That’s a thoughful (as in “full of thought”) move!  As those that have owned their homes for at least 5 years COULD be in or close to an equal or positive cash-flow in the pricing game and allow for an exit from their existing home (and purchase of a new home) with $$$ in their pockets (especially considering the tax credit).  There will be more details and information to follow as they are made available!
You can go to www.portlandrealestateupdate.com and read through the blog rolls for more details or ready this June blog post regarding the specifics and a Q & A on the “soon-to-be-former” tax credit:

October 30, 2009 by jackson : No Comments

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