by bintangkecil on Thursday, November 5th, 2009 | Business, News | 1 Comment

Congress passed legislation expanding an $8,000 tax credit for first-time homebuyers, extending unemployment benefits and providing tax refunds to money-losing companies.

The House approved the measure today on a 403-12 vote, sending it to President Barack Obama, who will sign it tomorrow, according to spokeswoman Jen Psaki. All 12 House members voting against the bill were Republicans. The Senate passed the bill 98-0 yesterday after weeks of delays.

Estimated to funnel $45 billion into the economy this year, the legislation is the first major expansion of provisions in February’s economic stimulus package. The bill would extend until April 30 the tax credit for first-time homebuyers that would otherwise expire at the end of this month.

The jobless would get as many as 20 additional weeks of unemployment assistance. Companies would be given expanded ability to apply losses to previous years’ income, allowing them to qualify this year for $33 billion in tax refunds, according to Congress’s Joint Committee on Taxation.

“The homebuyers’ credit has helped pave the way for stabilization in the housing market and contributed to three consecutive months of rising home prices,” said Representative Jim McDermott, a Washington Democrat. “Its extension will continue to make homeownership more affordable and bring confidence to a housing market and economy that remain fragile.”

U.S. unemployment is projected to average 9.85 percent next year, according to the median estimate in an October survey of economists by Bloomberg News. Lawmakers are considering whether to extend other elements of the stimulus package, including subsidies to help unemployed people buy health insurance.

The legislation approved today would allow the credit for couples earning up to $225,000 a year and individuals earning up to $125,000. That’s up from the current $75,000 limit for individuals and $150,000 for couples.

It would allow homebuyers who have owned their residence for at least five years to receive a $6,500 credit. Those who sell their new home or no longer use it as their main residence within three years would have to repay the credit. Homes worth more than $800,000 wouldn’t be eligible.

A Nov. 3 Goldman Sachs Group Inc. report said most of those who claim the credit would have bought homes without the program. It estimated the initiative spurred 200,000 home sales that otherwise wouldn’t have occurred.

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by wildcherry on Friday, October 30th, 2009 | Life, Tips | No Comments

Here’s some info to get the first time homebuyer tax credit:

• A first time home buyer is that person who has not owned a home for the past three years preceding the purchase of a home. This applies to married couples as well. This is to say that if your spouse has owned a home previously in the past three years, then you do not qualify as a first-time home buyer.
• The amount for which a first time home buyer can qualify is simply 10% of the value of the home to be bought and it does not exceed $8000. There are also some other criteria that are put into consideration to determine whether one will be approved for the tax income. This is the income level. Single persons must not be earning more than $75,000 while the limit for married persons is $150,000.
• You have to be intending to live in the house you buy to qualify for this credit and have to buy said residence between January 1, 2009 and December 1, 2009.
• There are income limits to this tax credit. If you earn more than 75,000 a year for singles or 150,000 a year for couples, you cannot qualify for the full credit. There is some leeway of 20,000 for people who earn a bit more than the above amounts and you may qualify for
• The credit must be paid back, but you have 15 years to do so. In the meantime, it will not be accruing any interest charges or late fees.  a partial credit if this is your case.
• To apply for the tax credit, you should fill out an IRS form 5405. The amount you qualify for will then be determined and you can claim for it on line 69, which is part and parcel of the tax form. This is the only form you will be required to fill and as you do so, you must be sure that the purchase is complete, otherwise you will be disqualified.

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