Tax Credit Would Get Buyers Off Fence

By
Real Estate Agent with Fathom Realty DC-VA-MD

Tax Credit Would Get Buyers Off Fence

A temporary tax credit would be the best incentive to move hesitant home buyers into the market, the NATIONAL ASSOCIATION OF REALTORS® told Congress on Thursday.

NAR said the tactic has been successful before; A 1975 temporary tax credit helped to "clear an over-supply of newly constructed homes during an economic downturn."

"We urge Congress to move quickly to conference and final passage of this tax incentive," said Jim Helsel, NAR treasurer and a partner in RSR, REALTORS®, in Lemoyne, Penn. "Failure to act quickly could further stall the housing market, hurting many of our members, who are predominantly small businesses owners and self-employed individuals."

Testifying for NAR before the House Committee on Small Business, Helsel said there are "three critical features for an optimal home buyer tax credit."

  • The credit should apply to all residential real estate - not solely foreclosed properties.
  • It should be temporary and only apply for a short period of time.
  • It should provide higher income limits than those the House has imposed, particularly for single individuals.


"If these measures are put in place, many individuals who are sitting on the fence will take steps to buy a home. This would not only help homeowners, buyers and sellers, but also it could expand activity as individuals furnish, paint and improve their homes. This would help boost the nation's economy," Helsel said.

NAR also discussed the importance of updating the "passive loss" rules that were enacted in 1986 to bring small investors back to real estate. The passive loss rules were not indexed for inflation, making the tax incentive irrelevant in most cases, Helsel said.

- NAR

MORE: http://www.realtor.org/RMODaily.nsf/pages/News2008060603?OpenDocument

 

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Ambassador
837,996
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

Interesting post and hopefully something congress will move on

Jun 09, 2008 02:40 AM #1
Rainer
208,371
James Wexler
wexzilla.com - Scottsdale, AZ

take a look at an article I posted today --- it is not mine, but it is a local journalist who broke down the tax incentives and the time frames -

Aug 05, 2008 06:20 PM #2
Rainmaker
4,432,217
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I hope the tax credit will help.

Aug 05, 2008 11:10 PM #3
Rainmaker
431,620
Frances C. Rokicki
Fran Rokicki Realty, LLC - Bolton, CT
Broker-Mentor,CRS

Nice to see NAR's article, I haven't been to the site for awhile.  Thanks for posting it here.  In New England, the price of fuel is killling us.  Our economy has slowed more as summer is passing.  We have taxes on our fuel in Ct, which is even worse.  Most of our homes are heated by oil.  Should be an interesting winter.  The US Congress needs to return from vacation and solve this fuel frenzy.  More than real estate is suffering, they need to get after it!

Aug 09, 2008 08:38 AM #4
Rainer
413,903
Terry Miller
Miller Homes Group - Tyler, TX
Miller Homes Group and Tyler Apartment Locator

Great post. I hope your back blogging in 2009. Thanks again.

Feb 04, 2009 08:57 AM #5
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Boris Miric

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