The long awaited and much anticipated tax credit bill for the home buyers has finally been announced. An $8000 tax credit has been announced for the perspective home owners. Though all the details regarding the bill have not emerged yet and the picture is still hazy, yet one thing which has become certain is that this bill will come along with the economic stimulating package designed to boost the ailing American economy.
There has been great expectation associated with this tax credit announcement in the housing sector and a hope that it will help in stabilizing the real estate industry which is suffering from a number of problems in recent times due to the ailing economy and bad debts.
An $8000 tax credit for first time home buyers which has been announced is welcome news for a large number of people but the amount as tax credit is reasonably lower than the $ 15000 which was approved by the Senate earlier. The announced amount of $8000 is, however, slightly higher than the amount approved by the House which was $ 7500. Besides that this new 8K tax credit also differs from the earlier one which was approved by the Senate in the sense that the $ 15000 tax credit package was applicable to all the home buyers.
But according to the new bill, $8000 in tax credit will only be available to the first time home buyers. This means that all those people will be deprived from enjoying the benefits of an $8000 tax credit, who already own a home and are planning to buy a second one. Furthermore, the proposal will eliminate the repayment requirements in an existing tax credit for first time home owners. President Obama is expected to sign the new bill next week.
The housing prices in the U.S. are still too high when compared to the income of the people and this is despite the fact that the economy is in recession. This has made it more difficult for people who are already victims of an ailing economy with job cuts and overload of debts and other problems, to go ahead and buy new homes.
They are forced to have a very limited choice in terms of planning to buy a new home because of poor economy and financial turmoil. In this scenario an $ 8000 tax credit will, to some extent, encourage those perspective buyers who are still unable to make a decision regarding whether to bye a new home or not. This will result in some bit of activity in the housing sector and will hopefully act as a stimulus to this debt ridden sector in these difficult times.
Popular topic for 8000 Credit for those planning to buy their first home.
I own a duplex and I live in one of the units.
I was planning to buy a condo and move in (As my primary residence)…but I guess I would not be getting any money back…I’ll stay in my duplex then…:(
Will their be a 2010 firstime homebuyer tax credit? and for how much?