First Time Home Buyer Tax Credit To Be Extended
October 27th, 2009 categories: First Time Home Buyer Info
U.S. Senate Could Approve This Week
According to an article posted on APP.com , Senator Bill Nelson of Florida is citing that the tax credit should be extended later in the week through 2010.
Gradual Reduction
Although the tax credit will be extended, it could be reduced gradually throughout the year.
Buyers purchasing from the time of the extension will get the full $8,000 to April 1st. After April 1st, the tax credit will be reduced $2000 per quarter to the end of the year.
Personally, I think this is a great idea. It promotes purchases in the otherwise slow selling season and puts pressure on buyers to get their purchases behind them to take full advantage of the tax credit prior to April 1st.
Two Proposals
There is also a more generous proposal to increase who the tax credit will apply to. One version of the legislation suggests including all couples who are earning $300,000 or less and extending it only through June.
I think an extension through the end of 2010 is a better idea. Fiscally speaking, I feel this is more responsible while extending it to all home buyers seems irresponsible based on the success of the program so far.
The current tax credit is directly responsible for boosting home sales in the Sacramento real estate market and the nation. Including all home buyers in my opinion isn’t necessary for the success of the program as it has already proved successful in it’s current form.
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