This is a tricky one. I got to take advantage of the $8000 tax credit for home buyers when it was first issued. Although I wasn’t going to turn down the $8000 tax credit that the government gave me, I see that there are going to be some longer-term negative effects of a program like this.
Then of course, the government extended the tax credit from November 2009 to June 2010 and opened it up to existing homeowners as well. And so, as we near the end of June it was up for another extension.
Tax Credit Extension Fails
Apparently the Senate Jobless aid bill that included an amendment to extend the homebuyer’s tax credit until September failed to pass in the Senate. So what this means is that in order to still qualify for the tax credit, you have to close your home purchase by June 30th 2010.
According to this article (Homebuyers tax credit extension fails)…
The bill, H.R. 4123, included an amendment allowing homebuyers a three-month extension on the tax credit, allowing them until September 30 to close on a home. But the extension only applied to buyers who signed purchasing contracts before the original April 30 deadline.
The bill would have provided repeat homebuyers a $6,500 tax credit and first time homebuyers a $8,000 tax credit.
Update July 1st, 2010 – A couple days later Congress went back at it again and they decided to pass a bill that does extend the homebuyer tax credit until September 30th 2010. According to this article from Reuters…
The U.S. Congress on Wednesday approved a bill extending the closing deadline for homebuyers trying to take advantage of a popular tax credit.
Homebuyers with contracts signed by April 30 who failed to go to closing by the June 30 deadline will now have until September 30 to complete their purchases. The House of Representatives on Tuesday approved the bill and it now goes to President Barack Obama for his signature.
The $8,000 tax credit for first time homebuyers and $6,500 credit for others purchasing a new primary residence was a highly popular temporary measure by the Obama administration to jump start home sales during the economic recession.
Do you have any opinions about the homebuyer’s tax credit? Do you wish it failed? Are you glad it was extended?