Time Running Out for Housing Credit, Horse Deduction
October 2, 2009
In the midst of the fallout from government policies designed to encourage people to buy houses they couldn’t afford (many of them through the tax code), a temporary law was enacted to encourage people to buy more houses they couldn’t afford as a way of stabilizing the market.
Giving people $8,000 in tax rebates for buying houses led to more houses being bought, a conclusion it took some people a report to confirm. The folks who rake in the dough from these tax provisions are pushing Congress to extend it past its scheduled expiration on November 30, 2009. It’s pure rent-seeking with a veneer of fake altruism (“stimulating demand,” “creating jobs,” “providing the American dream,” etc.).
I’m all for people buying homes, but I don’t see merit in the argument that people won’t do it unless we warp up the tax code and use it to move hundreds of billions of dollars into the pockets of real estate agents, building suppliers, and lobbyists.
But act fast before November 30!
Ditto for that racehorse purchase – act by the end of the year! Apparently starting next year you’ll have to deduct the purchase price over the horse’s lifetime rather than all at once in one year.
Picture at right: can you claim both?