How the Homebuyer Tax Credit Changes
The National Association of Realtors published a chart showing how the Homebuyer Tax Credit changes when President Obama signs the legislation into law; expected to happen today.
One item that I question on the chart is the need to sell your home if you qualify for the $6500. I don’t see that in the text of the legislation. I do see:
EXCEPTION FOR LONG-TIME RESIDENTS OF SAME PRINCIPAL RESIDENCE- In the case of an individual (and, if married, such individual’s spouse) who has owned and used the same residence as such individual’s principal residence for any 5-consecutive-year period during the 8-year period ending on the date of the purchase of a subsequent principal residence, such individual shall be treated as a first-time homebuyer for purposes of this section with respect to the purchase of such subsequent residence.’
I was transferred to voice mail when I called NAR to verify so will update as I know more. I may have missed something but it is worth finding out!
November 6th, 2009 at 12:35 pm
Charles – Good post.
Re: LT Residents: It is not necessary to sell the old home, as nothing in the statute refers to such. And the expanded credit is available for purchases closed after the date of enactment, presumably meaning tomorrow/Monday.
November 6th, 2009 at 12:37 pm
Thanks for helping to clarify the 6500 credit question. I’ll look for your update.
November 7th, 2009 at 12:06 pm
It looks like the tax credit extension passed! Great news for those homebuyers who wanted to buy but couldn’t given the timeframe. No doubt it will give an added boost the Portland real estate market.
November 19th, 2009 at 1:25 pm
NAR has changed the text on their website:
Who Qualifies for the Extended Credit?
* First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
* Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.