Real Estate Tax Stimulus Watered Down

It's about over. The stimulus bill has been modified, scrubbed, and purged to the point that it can get enough votes in Congress to send it to President Obama's desk for signature, maybe later today. The president says he'll still sign it -- something is better than nothing in today's dire economic environment.

Unfortunately for the housing industry, a major, and in my opinion, fundamentally important aspect of the bill has been modified to the point of rendering it a watered-down political concession with little chance of jump-starting the real estate market. Yes, the $15,000 Home Buyer Tax Credit stripped out by the House of Representatives upon its return to its chambers is a lost cause. Sure, there's a compromise measure granting first-time home buyers -- as opposed to any primary residence buyer -- an $8,000 tax credit.

From Lisa Desjardins of CNN Radio: "First-time homebuyers who purchase this calendar year get an $8,000 tax credit which does not have to be repaid like a similar measure last year. This phases out for people making more than $75,000 individually or $150,000 jointly. "First-time homebuyer" is defined as someone who has not owned a home for the past three years. Cost: $6.63 billion." For a list of the winners and losers in the final version of the bill, click here.

More real estate news at http://www.ebooksaboutrealestate.com