Home buyer tax credit extended

November 6th, 2009 By Ginger Wilcox

President Obama has just signed the home buyer tax credit bill.  The tax credit will be extended through April 30, 2010, with a 60-day extension if a contract is in place prior to the deadline.  First-time home buyers will continue to receive a tax credit of up to $8,000, while existing homeowners will receive a credit of up to $6,500.  Existing homeowners will be eligible for the $6,500 if they have lived in their current residences for at least five years.

The bill also increases the qualifying income limits to  $125,000 for single tax filers and $225,000 for joint filers.  The purchase price of the home is capped at $800,000.

Taxpayers will also be able to claim the credit on home purchases completed in 2010 on their 2009 income tax returns. Home buyers do not have to repay the credit as long as the home remains their primary residence for 36 months after purchase.  This requirement will be waived for active duty military personnel who move due to a military order.

So, what does this mean for Marin? This extension will definitely aid the lower tier of the Marin real estate market.  Communities like Novato, parts of San Rafael, Fairfax and San Anselmo will benefit most from the credit.  Southern Marin cities will not see much of a direct benefit because of the $800,000 purchase price cap but the overall Marin real estate market should benefit from the credit.