Homeowner Tax Credit Wrapping Up
April 27 2010
As you know, the Federal Homeowner Tax Credit is coming to an end. Offer expires Friday, April 30th, 2010.
I found this article while reading additional information on the Tax Credits. It talks about how the tax credit has affected the current real estate market and the homebuyers involved in the process.
Let me know what you think. Post a comment below.
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EAST SANDWICH- Early this month, David Mahler and his wife move into a new home, the first home the couple has owned.
“We’re choosing paint colors, we’re buying paint, we’re making decisions about what we want, we’re working on our house,” Mahler said. “It feels good being able to do that.”
The pair had contemplated buying for years and would probably have been able to do so, regardless of any government initiatives. But, when it came down to it, the $8,000 federal tax credit for first time homebuyers was one more factore that nudged them towards a purchase, Mahler said.
“It does make it more feasible”, he said.
Federal tax credits for first time homebuyers began in 2008, with a provision in the Housing and Economic Recovery Act of 2008 (more commonly known as the bailout bill) that offered a $7,500 tax credit that had to be paid back over 15 years.
In February 2009, the stimulus bill upped the amount to $8,00 and took away the requirement that the money be repaid. In November, legislation extended the credit to homes bought by April 30, 2010, and added a $6,500 credit for existing homeowners who bought a new house after at least five years in their current property.
Now, as the tax credit edges towards expiration on Friday, it may be impossible to know for sure how many home sales were spurred by the money offered by the federal government.
Because the incentive takes the form of a tax credit, and tax returns for 2010 will not be filed for another year, there is no complete data on how many people are claiming credit. However, recently sales figures have indicated a sharp spike in existing homes sales. This is excellent news!
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