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Archive for October 20th, 2009

Looking to buy in Pinellas County? The tax credit is nearing an end

     What’s going to happen to the first time homebuyer tax credit?
     The tax credit, which was introduced back in February as part of the Obama Administration’s stimulus package, gives an income tax credit of up to $8,000 to all first time home buyers. The trouble is, the tax credit runs out at the end of November.
     The Congress is thinking about extending the credit, and some members would like to see it expanded to apply to all home buyers, not just first-timers. But other members say that making the credit last longer – and apply to more people – would be a budget-buster. They say any new tax credit version should be offset by tax increases, or at least some spending cuts.
     Some observers say they think there’s a pretty good chance that the tax credit will be extended, but they are not so optimistic that it will be enlarged to include new categories of home buyers. 
     Under the current rules, the tax credit applies to individuals making more than $75,000 per year, or couples making no more than a combined $150,000 per year. Some members of Congress say they would like to double those limits so more homebuyers would qualify. That’s a nice idea and would stimulate more home purchases, but it would cost an estimated $16.7 billion. 
     Meanwhile, I can tell you that buyers are increasing their home shopping activities, trying to get sales done before the current programs ends. I know that because I have been busy showing property.