The U.S. House of Representatives has now (January 28, 2009) passed the Economic Stimulus Bill which includes the provision removing the “pay back” aspect of the $7,500 tax credit for first time home buyers according to this CNN report (http://tinyurl.com/c6wn7k). The Senate is expected to pass its own version of the bill in the next week or so.
This dramatically strengthens the incentive for qualifying buyers (first-time home buyers or those who haven’t owned a home in 3 years) considering the purchase of a principal residence in the near future. The removal of the pay-back provision (contained in both versions) apparently contains the caveat that you must not sell the home within 36 months.
At the moment a purchase between April 9, 2008 and June 30, 2009 (dates established by the 2008 Housing Recovery Act passed last summer) would seem to safely qualify for the credit. The qualifying dates during which the purchase must be made seem to keep changing. (The Senate version of the bill extends the eligibility through the end of August 2009.) So be sure to check with your tax professional for exact details. The credit may be applied to your 2008 taxes if you purchased in 2008.
There has been some talk of expanding the credit to other than first-time buyers but to date nothing solid has been proposed. Stay tuned. This is a very fluid situation. I’ll do my best to keep you updated.
