The $8,000 tax credit extension is great news. The $8,000 tax credit extension is an extension of the first-time homebuyerâ€™s tax credit.Â Originally, the $8,000 tax credit was set to expire November 30.
Â The $8,000 refundable tax credit is an easy way for homebuyers to score additional $8,000 cash money when they file their 2009 income taxes.Â Those who purchased homes before they filed their 2008 income tax return were able to receive their tax credit with their 2008 tax return.
Â Previously, a $7,500 tax credit was available. This tax credit was really an interest-free loan in disguise. After the $8,000 tax credit expires, the first time homebuyerâ€™s credit will revert back to a loan.
Â According to Bloomberg, the Senate is working on an $8,000 tax credit extension. Their hopes are to extend the tax credit until April 30, and expand it to include higher earning taxpayers than before.
Â Do you think the $8,000 tax credit extension is a good idea? The $8,000 tax credit extension will give families an incentive to purchase a new home. However, that money has to come from somewhere.Â Increasing taxes over the next few years are inevitable, as we must pay for all of the stimulus money we have so generously doled out.
Â If you are in the market for a home, the $8,000 tax credit extension is great news.Â This tax credit extension will give you an extra bit of money to help replenish your savings after you plop down your down payment.