Entry bubble Expanding the Home Buyer Tax Credit

By: Jess | October 15, 2009 | Category: Home and Family

House soldTwo of my friends bought their first house this year and are moving in this weekend. They get married this spring, but they wanted to take advantage of the $8,000 first time home buyer tax credit, which meant they had to buy the house before Dec. 1, 2009.

However, now there is a debate in Congress on whether the tax credit should be expanded or continued next year.

Some of the potential expansions include increasing the amount of the credit from $8,000 to $15,000, making the credit available for all of 2010 and opening the tax credit to all home buyers who meet the income requirements (currently $75,000 for those filing taxes separately and $150,000 for those filing jointly.)

Those who support the idea expanding the tax credit believe the credit will help cut down on the amount of foreclosures and prevent the housing market from falling farther.

Those who are in favor of letting the credit expire at the end of this year worry that expanding the credit would inflate house prices temporarily causing a severe drop off when the credit eventually does expire. They also worry that eventually the credit will have to be paid for through higher taxes.

So where do you stand on this issue? Are you in favor of expanding the credit or letting it expire after this year?

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