HOMEBUYER TAX CREDIT SUMMARY

1. Extend through April 30, 2010 the tax credit for first-time homebuyers (up to $8,000 or up to 10 percent of the purchase price of the residence), allowing 60 days to close, provided that the homes are under a binding contract by that date;Provide homebuyer tax credit of up to $6,500 to owners who have been in the same principal residence for five consecutive years during the previous eight years.

2. Increase the income limitations to $125,000 for individuals and $225,000 for joint filers.

3. Phase out the credit for individuals with incomes above $125,000 for individuals and $225,000 for joint filers at the same rate as current law (over the next $20,000).

3. Limit the credit to purchases of principal residences equal to or less than $800,000.

4. Eliminate the 36-month recapture requirement for military personnel, including members of the Foreign Service and intelligence community, forced to sell as a result of an official extended duty of service.

5. Extend the tax credit for one year for military personnel serving outside the United States for at least 90 days in 2009 or 2010.

The bill includes anti-fraud language. The measure would not extend the credit to taxpayers under the age of 18 on the date of purchase unless that person is married to a taxpayer above the age of 18. The amendment would also require a properly executed copy of the settlement statement to be attached to the tax return. Moreover, the substitute would expand the restriction on a residence acquired from a family member to include a residence acquired from a spouse’s family member. The bill would also extend math and clerical error authority to the Internal Revenue Service.

As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions. To look for homes anywhere in the tri-county area go to my website at http://www.carolinajoe.com/mls/

Sincerely,

"Carolina Joe" Idleman
http://www.carolinajoe.com/