Tax Credit Status

As you may have seen, a tremendous amount of information (and misinformation) has been circulated since the middle of last week regarding an extension of the $8,000 first-time homebuyer tax credit. Here is my understanding of where things stand.
 
Last week, Senators agreed in principle on an extension of the $8,000 credit for first-time buyers, as well as an expansion of the same to include a $6,500 tax credit for homeowners who are selling a primary residence that they have owned and occupied for at least five years. For either credit, buyers would need to close on their new homes by the end of June 2010 and have a signed "purchase agreement" by the end of April 2010. (Source: USA Today 10/29/09)

Please keep in mind that the above is a work in progress and no extension has been enacted. As is standard operating procedure, Senators are negotiating the details and what pet projects will be included in order to secure the necessary votes to pass the legislation. Assuming legislation passes, I will provide the relevant information once I am confident in my understanding of the particulars.

As an aside, be very cautious as to timing issues. For example, buying a home in Massachusetts is generally a 2-step process with respect to the contracts. Would a "Contract to Purchase" executed by the end of April suffice, or would a "Purchase and Sale Agreement" need to be executed? Further, the $6,500 credit will no doubt include parameters for the purchase of another primary residence. It will be crucial to understand the timing and/or trigger mechanisms necessary to qualify for the credit. With that said, if you are considering buying and/or selling property in Massachusetts or New Hampshire, I am always happy to assist you through the process.