Will The First Time Homebuyer Tax Credit Be Extended?
WILL THE FIRST-TIME HOMEBUYER
TAX CREDIT BE EXTENDED?
The current federal tax credit for first-time homebuyers requires that buyers close on their purchases (not just be under contract) by November 30, 2009. This creates great uncertainty for potential buyers who have not yet decided on a specific property and/or who have not yet finalized mortgage financing. In light of the rapidly approaching deadline many are wondering whether Congress will extend the deadline to retain this valuable incentive for first-time buyers. The National Association of Realtors along with the National Association of Home Builders have organized intense lobbying campaigns to promote an extension (and even an expansion) of the tax credit. Bills are pending in both houses to extend the credit for another year and other proposals actually include raising the maximum credit from $8,000 to $15,000 and extending the tax credit to all purchases (not just first-time purchases). The problem is that the heavy load of higher-profile legislation (e. g. health care, climate change and energy) presently being considered by Congress makes if questionable whether any of these tax credit proposals will receive adequate attention prior to the pending November 30 expiration to enable their passage. Ultimately, in light of the political implications that would arise from the termination of the incentive, it appears that the odds favor some sort of an extension (but not necessarily an expansion) of the current tax credit. However, there are no guarantees and buyers who want to take advantage of the tax credit would be well advised to plan on closing prior to November 30 to assure that they will receive this benefit.
Information Provided By
Goldstein & Levy, P. A. General Counsel Capitol Title Company Printed with permission of Andrew Levy, P.A.
©Capitol Title Insurance Agency, Inc. 2009
