US Extends Homebuyer Tax Credit

November 6, 2009 Taxation in USA  No comments

The US House of Representatives voted to extend the deadline of the country’s first-time homebuyer tax credit, expanding it to also include those who already own homes.

The US Senate, on November 4th, approved through a 98-0 vote, the bill extending the country’s first-time homebuyer tax credit. The US House of Representatives passed the bill in a 403-12 vote on November 5th. President Barack Obama is required to sign off on the scheme before it is enacted, this is expected to take place on November 7th.

Under the scheme, those who are buying their first home, or have not owned a home for the last three years, can receive up to US$8,000 in the form of a tax credit. The credit amount is pegged at 10% of the home’s purchase price, up to $800,000. Claimants with an adjusted gross income under US$125,000 can apply for the whole amount, while those exceeding the limit will receive only a partial credit. Homebuyers who have owned their current home for longer than five years are now able to receive a partial tax credit of up to US$6,500.

To be eligible for the extended tax credit, buyers must sign a purchase agreement by April 30th, 2010. Further, the sale must be closed by June 30th, 2010.

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