PRELUDE

Before I get into the story, let me share how I found out about the news...

I was reading my email.  Got some sort of promo from American Express to allow my Twitter Tweets to be broadcast on their service PULSE.  So, I allowed myself to be distracted and signed up for the 'new' service, before it slipped away from me.  The end result I was on my Twitter page (which I really do try to avoid during business hours = for obvious reasons).  Here I read a short TWEET by Schottfinancial who simply said "Tax Credit Extension Seems Likely" and then provided a link to an article published this morning by the online edition of REALTOR MAGAZINE.  You can see the original story, here.  This is the power of Social Networking.  Thanks for the heads up Schottfinancial!

AND NOW...THE STORY

So, if you check out the story, there is not a lot of mat and potatoes...just a serving of speculation by Florid Senator Bill Nelson (D) who spoke to the entourage of reporters traveling with the President on his trip to Florida. 

Apparently, the topic is a pretty hot one in Congress that appears to be stirring up a hornets nest...although details were not provided.

It appears, based on Sen Nelson's account that the current benefit will be extended through the end of March, 2010 as an $8,000 tax credit.  Then in each of the subsequent quarters, the amount of the tax credit would be reduced by $2,000. 

So, what I understand this to mean is that if extended, the benefit would remain in tact until 3/31/2010.  Then from 4/1/2010 until 6/30/2010 first time homebuyers would only be eligible to receive a $6,000 tax credit.  This amount would then be reduced again, by another $2,000 on July 1st and October 1st 2010 until the final period, starting January 1st, 2011 through March 31st, 2011 would provide eligible first time home buyers with a $2,000 tax credit.

I guess this is better than the 'cold turkey' we would otherwise be serving right after Thanksgiving and ending the program all together.

Please tell me what you think...