The $8,000 Homebuyer Tax Credit is Extended and Improved
There is more good news for the South Lake Tahoe real estate market. On Friday November 6Th, President Obama signed a bill extending and expanding the first-time home buyers tax credit.
The first-time homebuyer tax credit that was scheduled expire on December 1st has now been extended 
through the end of June, 2010. In order to qualify for the $8,000 tax credit, home buyers must enter into contract prior to April 30 and close escrow by June 30.
More home buyers will now qualify for the rebate because the income limits have also been raised. The income limit for single home buyers is $125,000, and married couples can now earn $225,000 and still get the full credit. The previous income limits to claim the tax credit were $75,000 for single home buyers, and $150,000 for married home buyers. To be considered a first time home buyer you must not have had an interest in a principal residence for 3 years prior to the home purchase.
The first-time home buyer tax credit did a great job stimulating the low end properties on the market, but a new addition to the bill will hopefully stimulate the higher end properties as well. Homeowners who have owned and occupied a residence for at least five years out of the last eight can now claim a $6500 tax credit as well. This new tax credit was designed to help the higher end housing market and homebuyers looking to trade-up in homes.
The extension of the first time home buyer tax credit is great news for those buyers that thought that they missed out on the rebate. For additional information about the tax credit or questions regarding the South Lake Tahoe real estate market, please give California and Nevada real estate agent Brent Johnson a call today!
