Tuesday, April 27, 2010

So What Happens When the Real Estate Tax Incentives End?

So what happens to the real estate market in San Antonio when the tax incentives end in a few days?  The $8,000 tax credit for first time homebuyers and $6500 for repeat homebuyers ends this Friday, April 30th.  Buyers who qualify for that incentive have to be under contract by that date and close the deal by June 30th to get the credit.

Ahh, but for San Antonio, there is an "escape clause".  San Antonio may benefit from an IRS provision that gives active-duty military members an extra year to buy a house and take the tax credits if they have been deployed for at least 90 days between Dec. 31, 2008, and May 1 of this year.  So with our large military bases here, we may see the market continue to be fueled by returning military buyers for the next year.  Time will tell.

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