Advocates of extending the $8,000 tax credit for another year may get an early Holiday gift. Senate has reportedly reached a tentative deal to keep the tax credit for another year, as well as expand its reach to existing homeowners, according to The Wall Street Journal.
Currently, first-time homebuyers with an income of $75,000 for singles and $150,000 for couples could claim a tax credit of up to $8,000 by Nov. 30. The new extension could include homebuyers who have owned their home for a consecutive five-year period in the past eight years and raise the acceptable income level to $125,000 for singles and $250,000 for couples. Existing homeowners would be eligible for a tax credit of $6,500 if the bill passed.
Just as the previous tax credit was meant to stimulate the economy, the new proposed tax credit is expected to help more homebuyers purchase the homes they desire while helping the housing market recover. The cost of the increased proposition is still the prevailing concern, but for now it seems focus has switched to how to attach the proposition to existing bills making their way to the Senate floor, which could significantly ease its reception.
This could be extraordinary news for homebuyers who currently own and first-time homebuyers who might not have been able to buy before Nov. 30!