First Time Home Buyers Tax Credit Extension – Dec 1, 2010?
The first time home buyers tax credit extension has seen approximately 314,000 home buyers file fax returns. At $8000 per home buyer that is a cost of about $154 million for the Treasury. The Treasury estimates that 1.5 million buyers will use the credit before the expiration on November 30th, 2009. To receive the tax credit, the entire home buying process must be complete, including closing, by November 30th. The Treasury estimates 200,000 buyers will purchase a home that would have not purchased a home without the tax credit; realtors estimate that number to be 300,000.
At this time, Senator Johnny Isakson is urging for the tax credit to be extended to December 1st, 2010. He not only wants the credit extended he also wants it increased to a maximum of $15,000 and available to all home buyers. Senator Ben Cardin is in favor of a six month extension which is supported by Senate Majority Leader Harry Reid.
Many analysts believe that the first time home buyers tax credit has been key to helping the housing market find a bottom. Many housing markets have hit their bottom and started an uptrend over the last few months. The issue at hand is that the Treasury is going to have to fund an extension of this tax credit.
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Author: Mike Garner of www.subprimeblogger.com