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Personally I find this sort of credit to be idiotic.
Typically, the biggest obstacle to purchasing a home that a FTHB has is saving up the downpayment. You can't claim the credit until AFTER you buy a house... so what kind of help for a FTHB is that!?
You'd create a lot more buyers by allowing FTHB's who plan to buy in 09 the ability to claim the credit on their 08 taxes without having bought the house. Then, on their 09 taxes, require them to verify the house they bought, or else repay the credit plus interest.
If you buy a house from now until Dec1, 2009, you will get your tax credit sometime in spring 2010.
I don't really know what everyone is complaining about. If you were thinking about buying a house within the next yr. this is a pretty good incentive to "speed up" your decision.
Uncle sam is gonna hand you 8K if you buy within the next 10months, why wouldnt' you?
Just so happened that our relator just submitted the final contract a week ago, so looks like were gonna get the 8K...I'm not complaining whatsoever!
Oh and, no, you never have to pay it back...free money!
Oh and, no, you never have to pay it back...free money!
Nothing is really free. You will be paying it back just like all us other taxpayers eventually. Whatever the government spends has to be paid back by us.
I heard its back down to $7500 and its restricted to first time home buyers only. Unsure if the other restrictions such as income have been lifted. Can anyone confirm whether is this:
1) $7500 tax credit meaning your AGI is reduced by $7500
or
2) $7500 tax credit meaning your total taxes owed is reduced by $7500
By definition, tax credit means that your total taxes are reduced. A thing that reduces your AGI would be called "tax deduction".
- If you closed on or before December 31st, 2008, nothing is changed.
- If you close after December 31st, 2008, and before December 1st, 2009:
- the credit is $8,000
- only if you did not own a house during the previous 3 years
- income caps are still in place - credit starts to phase out when your AGI is greater than 75K (single) or 150K (married)
- you don't have to repay, unless you sell the house or it ceases to be your principal residence within 3 years after purchase; exceptions apply
- If you buy during 2009, you may elect to treat the purchase as made on December 31, 2008, for income tax purposes - in other words, you may claim the credit on your 2008 tax return.
Last edited by esmith143; 02-13-2009 at 11:57 AM..
- If you closed on or before December 31st, 2008, nothing is changed.
- If you close after December 31st, 2008, and before December 1st, 2009:
- the credit is $8,000
- only if you did not own a house during the previous 3 years
- income caps are still in place - credit starts to phase out when your AGI is greater than 75K (single) or 150K (married)
- you don't have to repay, unless you sell the house or it ceases to be your principal residence within 3 years after purchase; exceptions apply
- If you buy during 2009, you may elect to treat the purchase as made on December 31, 2008, for income tax purposes - in other words, you may claim the credit on your 2008 tax return.
Smith,
thanks for bringing up the good news... IS IT FINALIZED?
Could you please give me the link.
I am closing on April 30, 2009.
/// May be I will back off from the contract - loosing $6900 - since my company announced today, that layoff will start in 2 weeks /// Steel Industry is big time down...I am really worried for first time about Job...
That sux. I wish they removed the income caps as it shouldnt matter who's buying ... they need to encourage everyone to buy (especially the folks that can afford it).
Smith,
thanks for bringing up the good news... IS IT FINALIZED?
Could you please give me the link.
I am closing on April 30, 2009.
/// May be I will back off from the contract - loosing $6900 - since my company announced today, that layoff will start in 2 weeks /// Steel Industry is big time down...I am really worried for first time about Job...
If your concern is this $8,000 tax credit, and if you would be sure to close if you only knew it was in place, I suggest you close anyway. If this doesn't get passed, the existing $7,500 credit for first time buyers is still in place, and will benefit anyone who purchases a home before the end of June 2009.
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