First time $8,000 tax credit to end December 1,2009
$8,000 tax break for first-time home buyers to expire soon
The expiration of the $8,000 tax credit for first-time home buyers is set on Dec. 1.
As Dec. 1 draws near, first-time home buyers are making extra efforts to avail on the Federal government’s tax credit, the Las Vegas Review-Journal reported.
Time is not on the side of the first-time home buyers. Despite the fact that the tax credit expires on Dec. 1; still the Nov. 30 deadline has to be beaten for one to qualify.
To avail on the government’s tax credit, the transfer of title to the new homeowner must be registered on or before Nov. 30.
Clock is tickling then as it typically takes 30-40 days to complete a home sale transaction.
Not everybody can avail on this tax credit. Only those home buyers that have not owned a home in the past three years can avail on this tax credit. The passage of the American Recovery and Reinvestment Act of 2009 makes this tax credit available to first-time home buyers.
The news organization Las Vegas Review-Journal reported that many of the first-time home buyers have availed the Federal Housing Administration loans. In August, the news organization reported that, Federal Housing Administration loans made up 28 percent of home sales in Las Vegas.
Of the total home sales in August in Las Vegas, 42 percent were cash transactions, 5 percent were Veterans Affairs loans and 23 percent were conventional loans, the news organization said.
With the plunged of median price of existing homes in Las Vegas amounting to about $135,000, for first-time home buyers; an $8,000 tax credit is an important consideration, Las Vegas Review-Journal reported.
With the end in sight for the government’s $8,000 tax credit, lobbyists are calling for Congress to extend the period of the tax break. Lobbyists are also calling for Congress to increase the tax break to $15,000 and to make this tax credit available, not only to first-time buyers but also to the rest of home buyers.