The CALIFORNIA ASSOCIATION OF REALTORS (C.A.R.) in late October called for the U.S. Senate to swiftly adopt the Dodd-Lieberman-Isakson amendment which would extend and amplify the hugely successful first-time home buyer tax credit until June 30, 2010. Under additional provisions in the Dodd-Lieberman-Isakson amendment, taxpayers would be able to claim the credit on purchases completed in 2010 on their 2009 income tax returns.
The amendment maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order. There is better news, the amendment would expand the credit by removing the first-time buyer requirement and instead would apply to all home buyers. The amendment also would increase the qualifying income limits to $150,000 for single buyers and $300,000 for those filing joint income tax returns.
According to C.A.R. President, James Liptak, “The success of the home buyer tax credit and its positive impact on the real estate market is clear, according to our research, nearly 40 percent of first-time buyers said they would not have purchased a home if the Federal tax credit for first-time home buyers was not offered. This underscores the significance of the Federal tax credit to the housing market’s recovery in California.
