Homebuyer Tax Credit May Extend To Current Homeowners

COLUMBUS, Ohio—Realtors said the first-time homebuyer tax credit is working as more than 1.2 million Americans have taken advantage of the offer.

Now, the tax credit may be extended from only first-time buyers to some current homeowners as well.

The Senate has yet to vote on the extension, but behind-the-scenes negotiations have resulted in an agreement to extend and expand the tax credit.

Under the agreement reportedly reached in the Senate, the $8,000 first-time homebuyer credit would be extended beyond Nov. 30—to cover all sales through April 30.

Those sales would then have to close by the end of June.

But the credit wouldn’t end there.

Current homeowners who have lived in their homes for at least five years would be eligible for a tax credit of up to $6,500 for buying a new home.

“People will be out buying more homes. The first-time homebuyers, now the person selling that home will have to buy a home as well. So it will do nothing but help housing sales,“ said Greg Hracak, a realtor.

Hracak is a former president of the Columbus Board of Realtors. He said the credit has given realtors a huge boost this year, which in turn boosts the economy as a whole.

“As housing goes, so America goes. When people are buying houses, they’re buying new appliances, furniture and it just runs the gamut,“ Hrabcak said.

The Senate has not voted on the agreement and it would still need to pass in the house, but the tax credit extension already has the support of President Barack Obama’s administration.

“If it gets through the Senate, we believe it will certainly get through the House,“ Hrabcak said.

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