Dennis Norman
I have been talking a lot lately about the first-time home buyer tax credit of $8,000 that has stimulated some home buying but is set to expire on November 30th. I have also shared the efforts by organizations such as the National Association of REALTORS, The Mortgage Bankers Associaiton, The National Association of Home Builders and Fix Housing First to urge Congress to extend the home buyer tax credit as well as expand it to include more than just first-time home buyers.
Unfortunately there are some inaccurate reports I’m seeing this morning that indicating the Senate has passed a bill to extend the home-buyer taxcredits, which is not true, yet. However, I am happy to report that progress is being made though! According to an email I just released by the National Association of REALTORS:
”Senate leaders of both parties, key Senate Finance Committee members and staff, and the homebuyer tax credit sponsors Sen. Chris Dodd (D-CT), Sen. Joe Lieberman (I-CT, and Sen. Johnny Isakson (R-GA), have reached an agreement on extending and expanding the housing tax credit.”
So while there is an agreement amongst the powers that be, which in itself is a HUGE step toward getting the credit extended, the fat lady hasn’t sang yet. They still need to agree on whether to attach the tax credit extension to a pending bill (such as the Unemployment Insurance Bill) or to bring it before the Senate as a separate, stand-alone bill.
Once it is determined how to bring it to the Senate, it will need to be passed by the Senate, then if passed will go to the House of Representatives to consider and hopefully pass. If passed by the House then all it takes is the Presidents signature and it is done.
So, while progress is being made, we are still a ways off from having the home buyer tax credit extended. If you would like to let your members of Congress know you want to see the tax credit extended you can easily do so using the link from the Fix Housing First website (click on “Time to Take Action!” in the upper right corner.
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I purchased a home on 22Dec09. I filed my tax return 10Feb2010 and claimed the long term resident tax credit of $6,500. I like many, many others had that credit dissallowed despite sending the required documentation. Bottom line was that after 14 months of numerious letters, telephone calls I finally got the credit 15April 2011. I filed a small dollar case appeal and had even talked to a local tax attorney about my case. I was prepared to go to court if necessary. If you still have not gotten your credit they only thing I can tell you is….don’t give up. Cover the IRS up with letters and telephone calls and you will get the credit eventually
thanks for sharing
Question ~
In the past 8 years I have bought 2 homes. Residing in the homes approx. 4 years a piece. In November, 2009 I sold my home and purchased another.
Because I fall 1 year short of residing 5 years in the same residence, I don’t qualify for the repeat home buyer stimulas package???
This is totally unfare and just plain wrong.
Hey Garreth, thanks for the comment..
I tend to agree with you…tax credits and other incentives create an “artificial market” and that is why many people are opposed to them…personally I have been an advocate for them as the housing market has been in such a bad slump it needs something if only a shot in the arm that lasts a while…the hope is that while the market is being artifically stimulated by credits, the underlying fundamentals (unemployment rate, economy in general, credit availability, etc) gets better so that there are real things in place to sustain the market that was created artificially….Time will tell..
Unfortunately we are off to a bad start since unemployment just hit 10.2% this morning..
In Austin, the market wasn’t suffering too much. The original tax credit put the market into overdrive with a strong sellers’ market in some parts. When the new credit expires, what will happen? Markets tend to swing between extremes.
Have purchase agreement signed between all parties and myself.
Mortgage company says they can’t close an FHA loan prior to
Nov. 31st deadline. If this extension doesn’t get passed by
Nov. 15th I plan to pull the plug on this sale and wait for
more collapse of housing prices to offer new contract.
Pat and Mike, I guess you are not taking advantage of this so you may be a little sour but if you don’t have some sort of incentive to buy up all these homes that are on the market from foreclosure then it would just create more problems. In the end I guess there really is no one solid right answer but still, something helps.
Why can they not understand, the owners of existing homes need help as well. Where is the help over here and not just to the first timers.
Stop wasting tax payers money and let housing come down to its natural price. Do not pass the 8k housing credit. Just throwing good money after bad.
This credit a credit for sellers and real estate agents. It does nothing for the buyers. Make the housing affordable by not extending the credit!
My husband saw one of those false reports on the news last night. We’ve got a house in mind to buy, have agreed to all the terms with the seller, however if the extension isn’t made, we’re out. Hope that “Fat-Lady Sings” sometime soon.. I just want to know if I will get getting a new house for Christmas or not! Thanks for the updates!