Looks like they've got it in the works... it would still need to be passed by the House of Representatives, but it's a step in the right direction! Stay tuned for more information.
Sue Ellett 512-422-7182
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By Stephen Ohlemacher, Associated Press Writer
WASHINGTON — Senators agreed Wednesday to extend a popular tax credit for first-time home buyers and to offer a reduced credit to some repeat buyers.
The tax credit provides up to $8,000 to first-time home buyers but is set to expire at the end of November. The Commerce Department said Wednesday that new home sales fell 3.6% in September, and some industry representatives blamed uncertainty about the tax credit.
Senators agreed to extend the existing tax credit for first-time home buyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev.
The tax credits would be available to home buyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, according to a summary of the legislation being circulated among lawmakers.
Senators were still negotiating the expansion of a separate tax credit that lets money-losing businesses get refunds for taxes paid in previous years, providing them with an immediate source of cash.
Senators in both political parties were hoping to add both tax provisions to a bill that would give people running out of unemployment insurance benefits up to 20 more weeks of federal aid. The Senate could vote on the overall bill as early as Thursday, but lawmakers were still haggling over several unrelated amendments Wednesday evening.
Popular bills like the one to extend unemployment benefits often attract amendments that would have a difficult time passing on their own.
Republicans were demanding that they be given a chance to offer amendments to restrict federal aid to the beleaguered community activist group ACORN and on requiring that people receiving unemployment insurance be processed through E-Verify, an Internet-based system that employers use to check on the immigration status of new hires.
Majority Democrats have refused to add the amendments.
If the Senate passes the bill, it would go to the House, which passed a similar bill extending unemployment benefits last month. House leaders have also said they support extending the tax credit for home buyers.
Sen. Chris Dodd, D-Conn., has been negotiating for several weeks with Sen. Johnny Isakson, R-Ga., to craft an extended tax credit for homebuyers that would pass the Senate.
Lawmakers didn't release a cost estimate for extending the tax credit, though similar proposals were projected to cost about $10 billion.
Industry representatives said uncertainty about the tax credit is hurting new home sales. September's decline was the first since March.
It takes 45 days to 60 days to close on a house, making it unlikely a sale made today would be consummated by the end of November, said Lucien Salvant, spokesman for the National Association of Realtors.
"Buyers right now have an incentive to hold off, not knowing whether the credit will be extended," Salvant said.
About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.
The tax credit for money-losing businesses is a favorite among Republican lawmakers. Businesses could get tax refunds by using losses from 2008 and 2009 to offset taxable profits made in the previous five years. Under current law, they can only offset profits from the previous two years.
The provision would help a variety of industries, including retailers, manufacturers and home builders, though it's expensive.
"It's clearly a way to put cash in the hands of some major economic players," said Clint Stretch, a tax policy expert at Deloitte Tax.
A similar proposal that was ultimately dropped from the economic stimulus package enacted in February would have cost nearly $20 billion over 10 years. Lawmakers are working to reduce the price tag.
Because people are so strapped for cash, this is a good way to get refunds when businesses need them for operating expenses, said Rachelle Bernstein, vice president and tax counsel for the National Retail Federation.
Thursday, October 29, 2009
Friday, October 16, 2009
Military $8,000 First Time Home Buyer Credit and MILITARY CASH BACK Home Buyer Program
The $8,000 Tax Credit has been extended for One (1) year for one group of First Time Home Buyers - see below.
House Passes Legislation Extending FTHB Tax Credit for Veterans
Oct 15th, 2009
The House of Representatives voted unanimously Monday to extend the deadline for the home buyers’ tax credit for one group of Americans.
HR 3590 will allow eligible military personnel, foreign service and intelligence officers to apply for the $8,000 tax credit for one year beyond its current November 30 deadline. Those meeting the underlying requirements for the credit must also be serving overseas or have spent at least 90 days deployed outside of the country during the current calendar year. It is expected that about 350,000 military personnel and an unknown number of federal employees may be affected by the new law. The bill, introduced by Representative Charles Rangel (D-NY) because it was thought that families serving overseas were being passed over for this one-time opportunity to purchase a home
There is currently a battle being waged over extending the popular credit for all eligible persons and possibly even removing the requirement that the home be a qualified first-time purchase. Many credit the current tax break for a recent surge in the housing market after months of rising inventories and falling prices. Such an extension is strongly supported by the National Association of Realtors, the National Association of Homebuilders, and other major players in the housing industry, however, many argue against it on the basis of cost.
In addition, Coldwell Banker United, Realtors(r) has a program for Military personnel to get CASH BACK when buying or selling a home. Contact us to sign up for this program-it's a great deal!
We focus on the greater Austin and Highland Lakes Areas including Travis, Burnet, Llano, Hays, Blanco, and Williamson Counties. If you live somewhere else, we can refer you to a Real Estate Agent certified to work with Military Personnel and you can still get the Cash Back Program.
Sue Ellett, Broker-Associate
866-693-7741
House Passes Legislation Extending FTHB Tax Credit for Veterans
Oct 15th, 2009
The House of Representatives voted unanimously Monday to extend the deadline for the home buyers’ tax credit for one group of Americans.
HR 3590 will allow eligible military personnel, foreign service and intelligence officers to apply for the $8,000 tax credit for one year beyond its current November 30 deadline. Those meeting the underlying requirements for the credit must also be serving overseas or have spent at least 90 days deployed outside of the country during the current calendar year. It is expected that about 350,000 military personnel and an unknown number of federal employees may be affected by the new law. The bill, introduced by Representative Charles Rangel (D-NY) because it was thought that families serving overseas were being passed over for this one-time opportunity to purchase a home
There is currently a battle being waged over extending the popular credit for all eligible persons and possibly even removing the requirement that the home be a qualified first-time purchase. Many credit the current tax break for a recent surge in the housing market after months of rising inventories and falling prices. Such an extension is strongly supported by the National Association of Realtors, the National Association of Homebuilders, and other major players in the housing industry, however, many argue against it on the basis of cost.
In addition, Coldwell Banker United, Realtors(r) has a program for Military personnel to get CASH BACK when buying or selling a home. Contact us to sign up for this program-it's a great deal!
We focus on the greater Austin and Highland Lakes Areas including Travis, Burnet, Llano, Hays, Blanco, and Williamson Counties. If you live somewhere else, we can refer you to a Real Estate Agent certified to work with Military Personnel and you can still get the Cash Back Program.
Sue Ellett, Broker-Associate
866-693-7741
Friday, October 9, 2009
Sunday, October 4, 2009
$8,000 Tax Credit - There's Still Time to Get Yours!
As I'm sure you have heard (after all, it's on the news, in the news and all over the place!), the First Time Home Buyer Tax Credit which can rebate you up to $8,000 when you file your taxes, is ending on November 30, 2009.
So, there are less than 60 days to take advantage of this great offering. You CAN still buy a home and get your credit before it goes away.
But, don't wait any longer....! Loans are taking 45-60 days to close, so you will need to move quickly. There are loads of great affordable homes available for you to purchase and call your own.
We can help - with membership in both the Austin and Highland Lakes Board of Realtors, we cover the entire Central Texas Highland Lakes and Austin areas. Contact the Paragon Property Group, Coldwell Banker United, Realtors at 866-693-7741 today. (If you aren't in our area, no problem, we can get you pre-qualified and refer you to a great professional to help you on your journey.
Plus, send us an email or give us a call and we'll send you our First Time Homebuyer's Guide FREE. It's a great resource to understand how the homebuying process works.
suemellett@yahoo.com
So, there are less than 60 days to take advantage of this great offering. You CAN still buy a home and get your credit before it goes away.
But, don't wait any longer....! Loans are taking 45-60 days to close, so you will need to move quickly. There are loads of great affordable homes available for you to purchase and call your own.
We can help - with membership in both the Austin and Highland Lakes Board of Realtors, we cover the entire Central Texas Highland Lakes and Austin areas. Contact the Paragon Property Group, Coldwell Banker United, Realtors at 866-693-7741 today. (If you aren't in our area, no problem, we can get you pre-qualified and refer you to a great professional to help you on your journey.
Plus, send us an email or give us a call and we'll send you our First Time Homebuyer's Guide FREE. It's a great resource to understand how the homebuying process works.
suemellett@yahoo.com
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