Possible Tax Extension Likely?

Today at my Real Estate board meeting it was discussed that there is a good chance of the Tax Credit being extended.  Here are some items that are being proposed for the new extension according to a guest lobbyist for government affairs:

1)Â The tax credit could apply to “step up buyers”, buyers who will be upgrading to a new home.

2)Â The “step up buyers” will have had to be in the home they are leaving for at least 7 years

3)Â Step up buyers” may have to be in their next home for at least three years.

4)Â The tax credit new deadline may extended to sometime in the spring of 2010.

5)Â If an executed contract is secured before the deadline, an extension for the credit could be possible for up to 60 days to complete closing.

Here is some additional information from the Associated Press and Realtor.org

“It seems likely that the U.S. Senate will approve a deal to extend the First-Time Homebuyer Tax Credit, but the devil is in the details.

Florida Democrat Sen. Bill Nelson told reporters traveling to Florida with President Obama on Monday that he thought that the extension would be approved, but both senators and representatives are among those who think that there should be some fiscal offset for the cost of the extension. . . . .

The proposal in the Senate that appears to have the most likelihood of passage would extend the $8,000 credit through March 31, then its value would drop by $2,000 for each of the subsequent three quarters of 2010. This plan was offered by Senate Majority Leader Harry Reid of Nevada and Senate Finance Committee Chairman Max Baucus, a Montana Democrat.”

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photo copyright 2007-2009, Amy S Myers

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