This is just a quick note about the $8000/$6500 homebuyer tax credit. As you may recall, this credit was originally introduced as an $8000 first-time homebuyer tax credit that was set to expire on November 30, 2009.
Shortly before its expiration, Congress acted to push the expiration date back to April 30, 2010. At the same time, they expanded the credit to include $6500 for existing homeowners who buy a new residence if they’ve lived in their current home for five of the past eight years.
Will the homebuyer credit be extended?
With the new expiration date looming, I’ve received several inquiries about whether or not the homebuyer tax credit will be once again extended. The short answers is that no, I haven’t heard anything about Congress acting to once again extend the homebuyer tax credit. Thus, if you’re not under contract by this coming Friday, you’re likely out of luck.
An exception for the military
The exception to this bit of bad news is that members of the military, foreign service, and intelligence communities may have an additional year to claim the credit. This extension applies to qualified service members who who served on official extended duty outside of the United States for at least 90 days between January 1, 2009 and April 30, 2010.
If you are interested, you can view current mortgage rates being offered by mortgage lenders.
10 Responses to “Will the Homebuyer Tax Credit Be Extended?”
look! It’s exactly what I said…how many – ah FIVE months ago!!
Ok floridian, I agree with some of what you said ( I would like to decide where my money goes). However, I still think that you are using this credit as a way to lash out about all of the wasteful spending of the govt. Your also right that If you are only buying a house to receive 8000 you probably shouldn’t be buying one and I agree they should do awway with SS. However, one thing you need to remember is that there is always going to be somebody that abuses the system, which makes it hard for a decent piece of legislation to be effective but my point is if they are gonna take taxes out of my check before I see it then I would like to use the credit and anything else that I qualify for because the 8000 that may or maynot be pennies depending on who you ask I plan on investing.
I have been working since I was 14 and just because now I have money I still remember where I come from so that is why I am all for helping the people and not wall street they have already lost enough of my money without me giving them more.
PS – the gov’t WILL have to pay for all of these entitlement programs SOMEhow. Taxes WILL go up. If you are in the highest tax bracket already – that should pi$$ you off. Anyone who is thinking about their (and their kids’) future, instead of copping a selfish attitude and asking “what can *I* get out of it NOW,” should be against all these programs. But that’s the problem with the Y generation (and the late X-ers – with whom I grew up). They don’t think about the future. It’s all about NOW. As a result, we’ve got a bunch of “adults” running around acting like a bunch of children…buying more than they can afford, not saving for the future, and then electing those whom they think will bail them out. We will ALL pay for this short-sighted behavior in the future (in the form of higher income taxes and probably a VAT on top of the FIT).
I didn’t say anyone who receives THIS credit is lazy. I have no problem with helping those WHO HELP THEMSELVES first – which is why I give to church and certain charities (more than the VP did last year, in fact! Seriously – all the money he made and he only gave $4,000 – he should be embarrassed). Anyway…the problem is, the system we have now – with so many entitlement programs – encourages laziness. More and more, you hear of people who have figured out that they are better off mooching off of the gov’t than earning a decent living. And those of us (you and me) who actually earn a decent wage end up paying more of our money in taxes to support these no-goods. Wouldn’t you rather KEEP your money, than to have the gov’t collect it in taxes and decide where to distribute it? And if you are going to give your money away, wouldn’t YOU rather decide who needs a handout?
I was 23 when I bought my first house. I SAVED (ohhh what a novel concept, eh??) for the down payment. Those who can’t buy a house without an $8,000 tax credit from the gov’t have no business buying a house. Besides that – the credit does nothing more than artificially prop up the housing market and give people a reason to ask more for the houses they are selling. I saw it this weekend when I went with my brother-in-law, who is looking for his first house. The sellers are asking more than the house is worth and then saying “but with the credit, it’s like you’re paying $8,000 less.” Ridiculous! Remove the credit and let the market correct itself!
And don’t even get me started on SS! That program needs to be nixed! I would definitely rather keep and invest my own money there! I agree with you in that you or I will probably never receive any benefit from it – the program will be broke by the time we are old enough to draw anything. It served it’s purpose when it was created – now it needs to go away.
“people like you who are against the extension probably go through every kind of a hoop to not have to pay taxes…..”
You’re sort of right there – I did become a CPA 🙂 My effective tax rate for 2009 was about 2%. And yes, I’ve already taken advantage of the energy efficiency credit (to improve my house, which I saved for and bought with no help from mommy, daddy, OR the gov’t, thank you!) and others so my effective tax rate for 2010 will be less than 2%. And I have already changed my allowances on my W4 so I don’t have to wait until refund time next year to get it back 😉
and BTW – you are not paying 35% on ALL your income. Take another look at how those taxes are calculated. And besides, if you are in the 35% tax bracket, $8,000 should be the equivalent of “pennies” to you. So I don’t know why you are hollering like my 5 year old “But *I* want it…it’s not Fai-er!” “fair” is nothing but a 4-letter F-word. Life is not Fair, get over it.
@ Floridian Lol good one.
Some people are just ridiculous. Tell me why it is ok for the goverment to give money to everyone except me a working class citizen. I don’t understand what makes anyone say that people who receive this credit is lazy. First off you can’t be dead broke and receive this credit because there is criteria that has to be met for you to even be able to buy a house like a job and fair credit. Nobody is buying a house off of a McDonald’s salary and below a 620 credit score in this economy so pipe down. 2nd I am a engineer I am being transferred and would like to buy a house and yes I want 8000 dollars why not the govt taxes me at 35% so its only fair. They take more than what God asks for he only wants 10%. So what is wrong with me getting a credit for spurring the economy when they will get there money back and then some. Not to mention that I am paying Social Security taxes and it may not even be available when I am ready to retire. I am 25 and I would like to buy my 1st house what is the problem. Its funny how people are always against something when it does not benefit them. Get off of your high horse and start trying to support your fellow Americans. I hope that they do extend the credit, if they don’t then I will lobby to have taxes removed completely since they only benefit the broke and the rich and nobody in between. Ignorant people like you who are against the extension probably go through every kind of a hoop to not have to pay taxes are the reason why this bill will probably not be extended meanwhile you are plotting on another deduction for next year. Ugh……….
FYI: if they extend it and nobody buys then we didn’t lose anything did we?
hehee – smarta$$ 😉
That’s Right…..I’m with you guys…. The hell with helping our own people. That makes me Sick when this government does something for it’s own citizens. I understand the government helping banks, Car Makers Wall Street.. sending millions to other countries but when they help a working person that is trying to obtain what was once the American dream, Well I’m sorry that’s where I draw the line… I work for a bank here in PA and my brother works on Wall Street as a broker and it’s not our fault their parents didn’t leave them a wealthy inheritance like my brother and mine did. Let them work for their money..My parents had to work for my brothers and my money. Her-ray for me and the hell with everyone else.
A-frickin’-MEN, you two! If the gov’t provides ANY thing to ANY one, it should be limited to military (and ex military), and those who have serious ailments that prevent them from working/taking care of themselves. Every one else can get off their lazy ar$es and get a job and save up for the things they want like the rest of us! And the kids? Well if you can’t feed ’em, don’t breed ’em! Stop giving money to those who don’t know what frickin’ birth control is! Our current system encourages laziness, sloth, and complete irresponsibility. Just sickening!
#1 The Biz of Life) Amen. I am getting pretty tired of paying for everyone’s cars, appliances, house downpayments, unemployment, solar panels, and all the other crap.
Let’s hope not. It’s time to end this artificial stimulus and these wealth transfers, and let the economy stand on it’s own two feet. We need to start getting these deficits under control.