Do you only have until April 30, 2010 to get into a binding contract on a house, in order to collect your $8,000 “1st time homebuyer credit” or your $6,500 Homebuyer Credit? Lots of discussion going around about that. Some say the credit is never, ever going to go away. I find that hard to believe…unless.
When someone buys a house, they seem to be more focused on getting $8,000 than they are about the mortgage interest and real estate tax annual deduction on their income tax return. What do you think about eliminating the long term benefits of these write offs, in favor of ONLY a one time up front credit? No annual Mortgage Interest Deduction. No annual Real Estate Taxes paid deduction. Just a one time up front cash back for buying a principal residence?
Seems to me the government can recoup all of the money spent on the up front credits and then some, by eliminating the long term write offs in exchange. Of course homes purchased prior to the change would have to be grandfathered and only homes purchased after X date would get the up front vs. the long term tax benefit. Maybe they could give the homebuyer the choice of which they want. A one time election in the year you purchase the house?
Unless the government is taking something away in exchange, I really see no basis for the Homebuyer Credits being extended ad infinitum. Your thoughts?