by Richard Schneider
Emeritus Professor of Accounting
Winona State University
On November 6th the President signed into law an extension of the first time home buyer’s tax credit. The credit is reduced to $6,500 for “long-term owners” but remains at $8,000 for first time buyers who did not own a home for the past 3 years. The credit is thus expanded to include ‘long-term home owners’. The new credit expires April 30th, 2010.
The credit for ‘long-term home owners’ applies to purchases starting November 7th, 2009 through closings before May 1st, 2010, or a closing before July 1st, 2010, if a binding contract to purchase was signed before May 1st, 2010