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Extension of the Home Buyer Tax Credit for Some

By Todd Levinson Published 10/13/2009 | Real Estate

A bill that extends the $8000 home buyer tax credit into  2010 for people serving in the military, diplomatic positions and intelligence  operations may pave the way for the billís extension to the general  sector.  The Home Buyer Tax Credit is  seen by many in the White House as an important stimulus to the economy,  helping to create and maintain jobs in the coming year.

The Home Buyer Tax Credit was created to encourage  first-time home buyers to purchase their first home and is calculated as 10% of  the homeís purchase price up to $8000.  By  taking advantage of this tax credit, new home owners now have a financial  advantage that can make home ownership that much easier.  Itís like having oneís closing costs and  taxes for the year paid for with a bit left over.

According to a study made by the National Association of  Realtorsģ, 350,000 people who bought a home during the time when the Home Buyer  Tax Credit was applicable to their purchase would not have taken their first  step to home ownership if it werenít for the Credit.  As of mid-October, the window for civilian  residents of the U.S. has been effectively closed, as it is nearly impossible  to initiate a home purchase and have closing completed in the timeframe of two  weeks.

The extension of the Home Buyer Tax Credit to the military  and other government employees makes many hope that it will be generally  extended into 2010 so that people who were unable to take advantage of it this  year will still have an opportunity.  While  there has been no official word from the White House on whether this is going  to be the case, hopes are high that the positive attitude towards it will be  enough for it to be signed into law.

Many believe that the tax credit is an important part of combating  the recent foreclosures that have turned some areas of the nation into  wastelands of empty houses.  The more  people who invest their money into real estate, the more people there are to  take an interest in their neighborhood and create thriving communities.

With government personnel being granted a reprieve that may  enable them to buy homes once returned from active duty overseas, the Home  Buyer Tax Credit is still alive and well.   Hopefully, once the success of its extension for people serving their  country is realized, it will make sense for the government to enable its use by  non-government citizens into the New Year.

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