Potential $10,000 Tax Credit for Homebuyers
Audio version available here:
Length: approx. 1 min. 40 sec.
With continuously high mortgage rates and prices, housing has become another item on many Americans' growing list of financial worries. To provide some aid, the President has proposed tax relief incentives to homebuyers and sellers, but experts are divided on the proposals.
During the March 7th, 2024 State of the Union, President Biden “proposed a ‘mortgage relief credit’ of $5,000 per year for two years” to “first-time homebuyers” primarily in the middle-class. Additionally, a $10,000 “one-year credit” for those selling their starter-houses to new live-in owners was also put forward. With this proposal, President Biden hopes to provide a remedy to the “country’s affordable housing issues”, however, with a divided Congress during an election year, it is unlikely this legislation will get passed anytime soon, if at all.
There are several factors that have led to the country’s current housing problems. Interest rates have fallen from 2023’s 8%, but the average “30-year fixed-rate mortgage” is currently around 7%, which is still quite high. Experts stress that “unless [Biden’s proposed credit] counts as qualifiable income” homebuyers are unlikely to see any meaningful relief. Another aspect of the nation’s “affordable housing issue” is the supply crisis. While there is still significant demand for housing, the supply is failing to meet those needs.
Although this proposal has the potential to provide relief to many, it is still in its ideation stage and faces a long path until becoming legislation. Rather than getting caught up in a single piece of possible legislation, it is important to understand the overall state of the economy, and to remain vigilant of further tax law updates. To stay up to date, keep up with the XQ CPA blog and follow our social media for the latest and greatest tax tips and business news.
Phone: 832-295-3353
Online Booking: https://xqcpa-bookme.acuityscheduling.com/schedule.php
Want the latest and greatest tax tips and business news? Stay up to date with our social media!
Our blog: https://www.xqcpahouston.com/blog
Our channel: https://youtube.com/@XQCPA
Facebook: https://www.facebook.com/XQCPA/
Instagram: https://www.instagram.com/tax_xqcpa/
Twitter: https://twitter.com/xqcpa
LinkedIn: https://www.linkedin.com/company/xq-cpa/
TikTok: https://www.tiktok.com/@xq.cpa
Sources:
