Tax Credit Rumors

In the real estate business, there is much talk about the tax credit especially now that there is a crunch to get all of those “wait until the last minute” first time homebuyers qualified for their mortgage and closed by the end of November.  Once the possibility of an extension existed, the story has been all over the map.

According to the San Antonio Business Journal, if the proposed legislation in the U.S. House of Representatives is passed, it will extend the first time home-buyer tax credit through June 1, 2010.  The bill will exempt military personnel from a provision that prevents homeowners from utilizing the credit and selling within the first two years since they often must sell their homes quickly with new military orders.

Okay, in addition to the extension, another piece of legislation would raise the credit to $15,000, and eliminate income restrictions.  Wow!  Who could resist that kind of a tax credit and get a house as a bonus, too?

Unspent funds from the economic stimulus package will pay for these two bills, if they pass.  Unspent funds?  Have you driven just about anywhere in America lately?  Road construction.  I am amazed there are unspent funds but who’s counting? Hopefully someone, and, of course, as a Realtor, I love the idea of an extension.  $8,000 is a great tax credit for first time homebuyers but $15,000 is nearly twice as nice.  Is it necessary to raise it to $15,000?  I haven’t heard the school of thought behind that bill.  So, at the end of November, will all those buyers delay closing until December so they can get a nearly double the tax credit?  Hmmmm!

It is obvious that if the first time home-buyer tax credit is going to be extended, our government had better make a decision quickly.   Is that an oxy-moron?  We shall see.

Happy House Hunting

Happy House Hunting

Published in: on October 18, 2009 at 2:45 am  Leave a Comment  
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