The Buyer Incentive is scheduled to expire on Nov 30th, 2009 and there are several bills before Congress to extend this credit . Two bills to extend it and one to also expand it. A Bill to extend it 12 months but this time narrowed down to Byers for those that have seen a minimum of 90 days overseas duty. A 2nd Bill expands the credit to $15,000 for 12 months for all home Buyers. The 3rd Bill would extend the current program for 6 months.

In my estimation, I am sort of on the fence about extending the First Time Buyer incentive. I well appreciate the benefit of the expiring First Time Home Buyers Federal Tax Credit. In light of all the huge number of foreclosures that have lowered home values in multitudes of communities, I see the potential benefit of getting more first time buyers off the fence and into their first homes. I also see the benefit in the incentive for those serving our country. Even more to be said about a credit for all byers at all levels. But who is going to pay for these multi-billion dollar programs with the current scorching deficits that will take decades to reconcile and all of these extended and expanded incentives may well come with some very creative tax increases.

As a REALTOR and generally in support of anything that will stimulate our housing markets, I would have to ignore how any of these bills may be reconciled tax wise but with the year nearing its 10th month and at least 1 more year with the current make up of Congress, the fairness issue is raised as the price to pay for these proposed incentives may well have to be born by those that will not necessarily be available to take advantage of the incentives and be burdened with its costly reconciliation by paying higher taxes.

The likely winner of these 3 bills and less onerous on the deficit will the version that extends the credit for 12 months for active Military that is endorsed by the Chairman of the House Ways and Means Committee. This will likely pass in the coming weeks with an amendment that gives on duty military the exclusion of holding their homes for 36 months if they are transferred away from their primary residence ( allowing them to sell without incurring the penalty of repaying the credit for holding less than 36 months).

If you are Buying, Selling or Relocating to San Diego and need help from a professional REALTOR®, give me a call or visit my San Diego Real Estate website and  sign up for Listing alerts for your favorite San Diego Home and Condominium Property Searches.

I specialize in Single Family Homes and Condominiums throughout the coast and inland areas of San Diego. Some of the communities are La Jolla, University Town Center, Bay Park, Mission Valley, Pacific Beach, Scripts Ranch, Poway, Carmel Mountain Ranch, Rancho Bernardo, Rancho Penasquitos,Carmel Valley and Solana Beach. If I didn't mention a city or community that you are interested in, just let me know  and i will find you an expert for that community as well.

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Copyright 2009 William Johnson author of The Real Estate Text Book
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