By now many of you have heard about the possibility of the first time homebuyer tax credit being extended and having it opened to current homeowners in certain cases. I pasted a link above to an article I read which gives more detail of the proposal. CNN.com also has a good article summarizing the proposal also. For now, the gray area I see which will become a tax question best left for the IRS and CPAs. The question will be regarding current homeowners, since it states you must be a current homeowner for the past 5 years, my question will surround those who just sold such as in the case of a Corporate Relo and are only temporarily living in a rental, apartment or corporate housing. Will there be rules or limits to protect these new buyers? Since the plan isn’t official yet, the accountants I spoke with of course cannot answer that because there is no guidance in place as of yet. I will try to gather this information in the days and weeks ahead as the lay of the land becomes more clear.
Either way, it’s a great thing. Many first time homebuyers were in a frenzy trying to get closed by 11/30 which was leading to a lot of panic amongst agents, lenders, brokers and attorneys to try to fit everything in and make these priority 1. It should give a nice spike over the winter months as well along with getting current homeowners to possibly explore the possibility of purchasing a new home.
If we can be of any assistance please let us know. Thanks as always for the opportunity to have helped.
Check the Link: http://www.usnews.com/money/blogs/the-home-front/2009/10/29/first-time-home-buyer-tax-credit-gets-obama-nod.html
