Possible extension of first time home buyer tax credit in the works
The deadline is coming up for the first time home buyer tax credit. New lending regulations have extended the time between purchasing a home and closing the home to about 6 weeks. In order to close before the November 30 deadline you will have to find and put your home under contract by the middle of October.
There's a big push by lawmakers, real estate professionals, and lobbying groups to extend the current tax credit for home buyers. First time home buyers can currently get an $8000 tax credit for buying a primary home. This credit lasts through November 30, with all transactions needing to be closed by that date to qualify.
There are a number of proposals from Republican and Democrat legislators to extend and even expand the tax credit. While some proposals are for a 6 to 12 month extension, the expanded monetary guidelines could have even bigger ramifications. One proposal is to increase the maximum tax credit from $8,000 to $15,000. This would make a real difference in higher-value markets like Seattle.
Of course, nothing is certain in politics. There are many more high-profile budget issues at hand, so it's hard to say if these measure will get the attention they need. The only sure thing right now is that the current credit will be in effect through November 30.
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