Homebuyer Tax Credit Expected To Be Extended – Senate To Make Ruling.

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The current $8,000 tax credit awarded to first time homebuyers is set to expire November 31, 2009. The current tax credit has been responsible for the recent influx in home sales and slowly recovering economy.

Many consumers as well as law makers feel that if this tax credit were to end, that it would have a severely adverse reaction to the fragile real estate market as well as the economy in general. For this reason, law-makers are currently debating whether or not to extend the current tax credit to carry on well into next year. Here are the details.

The tax stimulus is set to expire at the end of November 2009. There are currently a few house representatives that have proposed bills to extend the tax credit and offer more incentive. Under the current qualifications for this tax credit; buyers must be first time homebuyers or must have not purchased a home within the past 7 years. Buyers will be given an $8000 tax credit when purchasing a home and closing on the purchase on or before November 30, 2009. Senator Johnny Isakson (R-Georgia) is planning to present their own version of this tax credit to the rest of the Senate for debate on whether or not to extend the current homebuyer credit.

Under the new proposal, the tax credit of $8,000.00 will carry on into next year and slowly decline as time progresses. Offering $8,000 now, $6,000 if the purchase occurs in the second quarter of next year, $4,000 if a home is purchased in the third quarter and $2,000 is purchased in the fourth.

Additionally, an increase in the maximum household income is being proposed so that more people can qualify for this tax credit to allow a maximum of $150K household income for a single person and $300K for a couple.

There is some resistance to this amendment as well; many argue that extending the tax credit for so long will result in lesser taxes being paid back to the government. Although the opposition is small, their position will still be heard by the Senate this week.

An expected decision on this tax credit is expected by the end of this week, after which it will go to the House of Representatives for a final debate and decision.

Stay tuned for more information about this and other real estate news. Check back with us weekly at http://www.gsigllc.com/ or follow us on twitter at http://www.blogger.com/www.twitter.com/gsigllc/