U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 02-05-2009, 10:57 AM
 
1,340 posts, read 3,308,806 times
Reputation: 448

Advertisements

Quote:
Originally Posted by kcam213 View Post
So is this a tax credit that you don't have to pay taxes on?

so the amount you actually get will not be "$15,000" but savings that you would have to pay on $15,000.

Is this correct?
You will get to reduce your Fed Tax liability by $7500 for 2 years.
So if you owed $8000 in Fed Taxes last year and had paid $9000 over the year as typical witholdings you would get the $1000 owed back to you + $7500. Repeat again for following tax year.

Not sure how it plays out if you paid less in FED taxes than $7500 and hence be paying negative into FED taxes in a given year.
Reply With Quote Quick reply to this message

 
Old 02-05-2009, 11:01 AM
 
Location: West, Southwest, East & Northeast
3,446 posts, read 6,574,988 times
Reputation: 867
Quote:
Originally Posted by NatasNJ View Post
Details seem to suggest it would be from 1/1/2009 - Sept09 or Dec09.
No! It is an "amendment" to the current plan now in effect. It would "sunset" the current (old) $7.5k plan, which has limitations, e.g. first-time homebuyer, etc. The "amendment" would pay a pure $15,000 credit (not to be paid back) on any primary house bought (over $150k) since April 8, 2008.

Real Estate News and Analysis, Celebrity Homes, and Mortgage Rates - Zillow Blog
Reply With Quote Quick reply to this message
 
Old 02-05-2009, 11:03 AM
 
Location: Kansas
3,855 posts, read 11,741,326 times
Reputation: 1714
Quote:
Originally Posted by NatasNJ View Post
Details seem to suggest it would be from 1/1/2009 - Sept09 or Dec09.
I've been hearing mixed info. I heard it would be from within 1 year of bill passage also.
Reply With Quote Quick reply to this message
 
Old 02-05-2009, 11:04 AM
 
15,062 posts, read 19,616,593 times
Reputation: 12219
Quote:
Originally Posted by Kootr View Post
on any primary house bought (over $150k) since April 8, 2008.
If it's only for house over $150,000 then why do they say:
"$15,000 or 10% of the value of the house, whichever one is less"
Reply With Quote Quick reply to this message
 
Old 02-05-2009, 11:04 AM
 
Location: West, Southwest, East & Northeast
3,446 posts, read 6,574,988 times
Reputation: 867
Quote:
Originally Posted by bcm View Post
I looked at the form that they presently have up...how do you actually get the money?

Isn't it that somehow I'll have a ~$15000 check for the day of my closing? I don't get what they mean by credit.
You would get the tax credit on your Federal taxes. Don't expect to have your closing costs reduced by $15k...that's NOT how it works.
Reply With Quote Quick reply to this message
 
Old 02-05-2009, 11:06 AM
 
Location: West, Southwest, East & Northeast
3,446 posts, read 6,574,988 times
Reputation: 867
Quote:
Originally Posted by Dopo View Post
If it's only for house over $150,000 then why do they say:
"$15,000 or 10% of the value of the house, whichever one is less"


10% of $150k is $15,000.

If you buy a $100k house you would get $10,000. If you buy a $500k house you [only] get the maximum of $15,000.
Reply With Quote Quick reply to this message
 
Old 02-05-2009, 11:13 AM
 
1,340 posts, read 3,308,806 times
Reputation: 448
``(1) DATE OF PURCHASE.--The credit allowed under subsection (a) shall be allowed only with respect to purchases made--

``(A) after December 31, 2008, and

``(B) before January 1, 2010.

Looks like Previous purchases in 08 Don't count.
Reply With Quote Quick reply to this message
 
Old 02-05-2009, 11:17 AM
 
Location: Kansas
3,855 posts, read 11,741,326 times
Reputation: 1714
Quote:
Originally Posted by NatasNJ View Post
``(1) DATE OF PURCHASE.--The credit allowed under subsection (a) shall be allowed only with respect to purchases made--

``(A) after December 31, 2008, and

``(B) before January 1, 2010.

Looks like Previous purchases in 08 Don't count.
What's the source?
Reply With Quote Quick reply to this message
 
Old 02-05-2009, 11:18 AM
bcm
 
5 posts, read 20,582 times
Reputation: 11
Quote:
Originally Posted by Kootr View Post
You would get the tax credit on your Federal taxes. Don't expect to have your closing costs reduced by $15k...that's NOT how it works.
Forgive me I am a slow learner. So I heard there was talk of actually having this money available on a buyer's closing day. So I am confused.

So as for my personal example, I am putting 50k down (10%) and will face 7k in closing costs. This wouldn't give me another 15k to put down for arguments sake?
Reply With Quote Quick reply to this message
 
Old 02-05-2009, 11:19 AM
 
Location: West, Southwest, East & Northeast
3,446 posts, read 6,574,988 times
Reputation: 867
Quote:
Originally Posted by NatasNJ View Post
Yeah. Details on when you purchased seems to be up in the air. No clear data on that yet.
I hear this new bill would SUPERCEDE the old $7500 bill but start from 09 on. And if you took the $7500 int free loan you would NOT be able to get this benefit.

We will see. Not goign to argue since neither of us really 100% know.
True. It is still up in the air, but being defined. And, of course, the bill has not passed yet. However (if passed), I certainly expect taxpayers could amend their taxes in which they applied for the $7.5k credit to replace it with the new (yet unpassed) $15k tax credit.

For your information, this is how the original bill (S.2566) read (however it is being fine tuned to eliminate some of the limitation requirements):

On January 29, Senator Johnny Isakson (R-GA) introduced
a bill (S. 2566) to create a one-time $15,000 tax credit for taxpayers who
purchase a primary residence that is certified by the seller to meet one of
the following requirements: (1) a new home for which a building permit was
issued and construction began on or before September 1, 2007; (2) an
owner-occupied home for which the first mortgage loan is in default; or (3)
a single-family home owned by a mortgagor or its agent as a result of a
foreclosure. Senate Republican leaders have also included a home buyer tax
credit proposal in a housing stimulus bill currently under development.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. | Please obey Forum Rules | Terms of Use and Privacy Policy

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top