bostonbubble.com

[JAP]

Has anyone thought about how the expiraiton of Bush's tax credits in 2011 will play out on the real estate market? I don't think any of the buyers today are even pricing this into their budgets for purchasing a house.

I know financially I am certainly going to feel the bigger tax bracket in 2012 which will be the first year I am pushed back up into a higher tax bracket. This has definitely made me look for a home that is about 25K-35K under where I would be without the change. I am surprised to see there has not been more of an in-depth discussion on this topic at least for a little while on this forum. It will no doubt alter the purchasing power of anyone who is effected. IMO it should be right up there with interest rates in how it will affect the market. the only differene is incrreased interest rates will effect everyone and these tax changes will only effect a smaller pecentage of the buyer market. Nonetheless for that specifc segment of buyers in which the tax changes will effect it will be hard not to feel it come tax time.

[melonrightcoast]

Perhaps you can find more information here:

http://www.rocketfinance.net/2010/02/02/developing-controversy-on-the-expiration-of-bush-tax-cuts/
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melonrightcoast ... are you?

[balor123]

Last year I was trying to realize losses to give me writeoffs going forwards. Then I realized the tax cuts were expiring and now I want to realize the gains this year! Also planning on paying the full taxes this year on the Roth IRA conversion. As for affordability, I don't think most homebuyers really give it much thought and the industry and government policies encourage them to do it this way. I'm not sure many can afford it today but will be interesting to see how these taxes cause higher default rates than expected. Not a small amount of money.