The National Association of Realtors (NAR) wants the Obama Administration to extend the $8K tax credit for first-time home buyers but the Obama Administration is concerned about the cost of the program and the IRS claims widespread fraud. However, lawmakers understand that the program is popular and has helped spur the housing recovery.
The existing credit which expires on November 30, allows qualified first-time home buyers to reduce their federal income taxes by 10 percent of the price of a home, up to a maximum of $8,000. Homes purchased after Jan. 1 are eligible. The full credit is limited to single filers making less than $75,000 a year and joint filers making less than $150,000.
About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit. Read more.