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Senate “Likely” To Extend First Time Homebuyer Tax Credit

 The “Good News Economists” over at Seeking Alpha posted a timely article this week that should ease the impatient millions who waited to take advantage of the tax credit that expires in about  – oh, I don’t know exactly, uhhhh…it depends on your bank, but like, uhhhh… 10 or 12 real working days.

If you don’t know, then now you know.

Take heed, slowpokes.

Just realize that the “new deal” is slightly different, and that victory comes to the swift and the capitalized.

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“Senate Majority Leader Harry Reid has proposed a new version of a popular home-buyer tax-credit extension. Folks close to the matter claim a vote on the proposal is coming shortly.

Another recent Senate alternative would continue the $8,000 credit for four months and then gradually phase it out after that. Current law has the credit expiring at the end of November.

The value of the credit would drop by $2,000 every quarter until it halted completely by the end of 2010.

The National Association of Realtors supports the extension of the credit though at least the first two quarters of 2010 to assure that recent new home sales is firmly on a recovery track. They claim that home-buying activity in that six-month period could be crucial for new stability in the housing market again.

On the contrary, the Reid proposal wouldn’t be nearly as effective at stimulating home sales, Mr. Salvant said, because it would start winding down during the second quarter.

The debate comes as a Treasury auditor revealed this week that the Internal Revenue Service improperly issued millions of refunds related to the credit.”

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