Tax Credit Ends in April

Teresita Guest Jan 09, 2010 2:29 PM

The tax credit for homebuyers ends at the end of April of the current year. With the intention of providing temporary support for housing markets, this tax credit reduces taxes dollar-for-dollar by up to $8,000 for new homebuyers and $6,500 for buyers who already own a home. Many homebuyers are taking advantage of it, but even though the tax credit does not require repayment, buyers will have to repay the credit amount if the home ceases to be the taxpayer's main residence within a three-year period following the purchase. This is to prevent investors from benefiting from this tax credit. Some business groups have expressed that the tax credit should last until the economy recovers enough to start fueling home sales. Some others say that the amount of the credit, now capped at $8,000, should be raised to $15,000 and applied to anyone who buys a home to spark home sales. How more can be done to stimulate to move-up the market? This is still a tough question.

 Copyright © 2009 Midwest Premier Realty, LLC. All Rights Reserved. No distribution, reproduction, or transmission of the copyrighted website materials are permitted without the written permission of Midwest Premier Realty, LLC.