The National Association of Exclusive Buyer Agents (NAEBA) expresses support for legislation recently introduced by Representative Eliot Engel (D-NY17) that would amend the Internal Revenue Code of 1986 eliminating the so called "marriage penalty" from the Home Buyer Tax Credit.
The current guidelines require both spouses to have the same exact ownership history in order to claim the tax credit, a standard that does not apply to unmarried couples, effectively penalizing married homebuyers. "We applaud Representative Engel's leadership on this issue and fully supportthis legislation that will make the current homebuyer tax credit section of the Internal Revenue Code of 1986 more equitable for all potential home buyers," said Benjamin Clark, 2010 President of NAEBA.
The Worker, Homeownership, and Business Assistance Act of 2009 provides a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence and a tax credit of up to $6500 for repeat home buyers who have owned a home for five consecutive years out of the prior eight years. The tax credit is available for eligible purchasers who are in contract by April 30, 2010 and close by June 30, 2010. H.R. 4701, introduced by Representative Eliot Engel (D-NY17), would provide relief to certain married couples who would otherwise be ineligible for the first-time homebuyer credit.
The bill provides that married individuals filing a joint return would qualify for the appropriate credit even where one spouse is ineligible. For example, if one spouse is a first-time homebuyer and the other is ineligible, the couple would be treated as first-time homebuyers. However, such a couple could qualify for up to $4,000.00, as opposed to the full $8,000.00 tax credit had both spouses been first time homebuyers. The bill has been referred to the House Committee on Ways and Means.
Gary Dwyer, CRS, GRI, ABR, REALTOR
Buyer Agents of Boston, LLC - Exclusive Buyer Agents Serving Greater Boston
806 Tremont St, #2
Boston, MA 02118
617 997-5570 - Voice
617 507-8104 - Fax
Thanks for sharing this update with us today. Things continue to change
It's now August 3, 2010.....any information on the status of this Bill to remove the marriage penalty from the Home Buyer Tax Credit? My husband and I just got a certified letter from the IRS that we do not qualify for the home buyer tax credit as we both 'cancel' each other out. I am a long-time resident buyer and we married in 2008. My husband did not own a home in the past 3 yrs. so he would qualify as a "First Time Buyer." We sold my house in May 2010 and closed on our 1st home together on June 14, 2010. Because we are MARRIED on the date of the purchase, we both would either have to be FIRST TIME HOME BUYERS or LONG TIME RESIDENT BUYERS. Since we each qualify as individuals for ONE of these credits, the fact that were are MARRIED cancels each other out!!! We were told that we both have to have the SAME OWNERSHIP STATUS TO RECEIVE THE TAX CREDIT. So, if we were unmarried and bought the house together, I would get 1/2 of $6500 and my husband, as a single, would have gotten $4,000. Is that not a total undermining of the intent of the LAWS OF THE USA??? What happened to the sanctity of marriage???? I heard resident aliens also qualify for the tax credit and WE DON'T???? What is wrong with this picture??? I plan to write all my Congress Reps and Senators in FL and send letters to FOX NEWS, etc. to expose this bait & switch tactic used by the current administration....shame on them!
It's now March 2011. Do you think we're any closer to having this unfair SLAP on marriage justified? NO! This has fallen completely between the cracks and is being permanently swept under the rug. PLEASE, someone correct me if I am wrong! Our economy is in shambles, gas is ALREADY $4 per gallon here. Our fearless leader is running us out of money...FAST! Honestly, where is this issue in our nation's priorities?
My wife and I bought a house, only to find out AFTER THE FACT that we did not qualify BECAUSE WE WERE MARRIED!!!. Yeah, this was a nice boost to the real estate market all right. All of the married couples have found out the hard way that they boosted the numbers under FALSE pretenses and were taken advantage of. I don't believe this loophole was ignored. The legislation could have been amended. Now that we have a new Congress, we have to start all over again. Is there any hope? I hate to be pessimistic, but I've given up!
I'm shocked that there isn't more feedback on this.
My husband and I filed for the credit not knowing that we didn't qualify. It is now February 2012 and we have to return $6500 plus interest to the Department of the Treasury. If we married 5 months later we would both have qualified separately. This marriage penalty was created by on oversight of Congress. It should be corrected.