Tax credit extension coming to an end
EUGENE, Ore. -- It has been nearly four months since the first-time homebuyer tax credit was extended. On April 30, 2010, the housing tax credit will end.
The original program went from offering an $8,000 tax credit for first-time homebuyers to including a $6,500 tax credit for others looking to buy. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
Real estate agent Patrick Hurley, with Keller William Realty, said the credit has helped boost Eugene's economy. "This was basically a way to help try to prop up the real estate economy," Hurley said. "Honestly, real estate is probably the backbone of our economy in many ways."
But that backbone began to slip after skyrocketing foreclosures, short sales and the banking industry collapsed. Nonetheless, this direct-cash rebate is still a very nice bonus for those who can take advantage of it. Homebuyers must purchase a home by April 30, and complete the sale by June 30, to receive the credit.
Hurley said he'd like to see more people take advantage of the deal while it lasts.
“I think that, a little, people are afraid," Hurley said. "They're afraid about their jobs, they are afraid about what the housing market will do. Is it going to keep sliding back, is it a good investment, how is this going to help me?”
He said, until the economy picks up, the tax credit is needed to keep the housing market afloat.
“If we hadn't had this last summer I think that there would be a lot of people that wouldn't have bought a house last summer that did because of this,” Hurley said.
Related link:
