First Time Home Buyer Tax Credit to change to $8,000

So, what is happening on the government front now? Are we or aren't we getting the help we need? There are so many variables afloat and no one seems to know what the exact language of anything right now. The consensus is that one of the biggest items that we in the Real Estate industry have been looking for, the tax credit will not be what we want, but may be close. The current $7,500 first time home buyer tax credit is due to expire on July 1.

Details regarding the tax credit that have been released so far, the tax credit has been scaled down to $8,000 from $15,000, or 10% of the value of the home for any first time homebuyers who purchase homes from the start of the year until the end of November.  It starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.  Buyers will have to repay the credit if they sell their homes within three years.  There are still a lot of details about this plan to be released.

Getting the Real Estate business back to normal, is the most important thing that most of us on Active Rain are interested in, however, the current economic problems go far beyond Real Estate. I will continue to keep on top of what is happening in our arena.