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Old 02-05-2009, 12:21 PM
 
1,314 posts, read 2,231,938 times
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Quote:
Originally Posted by Kootr View Post
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 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.
THIS IS FROM one of the 20 $15k threads on city-data....


SA 106. Mr. ISAKSON (for himself and Mr. LIEBERMAN) submitted an amendment intended to be proposed to amendment SA 98 proposed by Mr. INOUYE (for himself and Mr. BAUCUS) to the bill H.R. 1, making supplemental appropriations for job preservation and creation, infrastructure investment, energy efficiency and science, assistance to the unemployed, and State and

[Page: S1442] GPO's PDFlocal fiscal stabilization, for fiscal year ending September 30, 2009, and for other purposes; which was ordered to lie on the table; as follows:

Strike section 1006 of title I of Division B and insert the following:

SEC. 1006. CREDIT FOR CERTAIN HOME PURCHASES.

(a) Allowance of Credit.--Subpart A of part IV of subchapter A of chapter 1 is amended by inserting after section 25D the following new section:

``SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES.

``(a) Allowance of Credit.--

``(1) IN GENERAL.--In the case of an individual who is a purchaser of a qualified principal residence during the taxable year, there shall be allowed as a credit against the tax imposed by this chapter an amount equal to 10 percent of the purchase price of the residence.

``(2) DOLLAR LIMITATION.--The amount of the credit allowed under paragraph (1) shall not exceed $15,000.

``(3) ALLOCATION OF CREDIT AMOUNT.--At the election of the taxpayer, the amount of the credit allowed under paragraph (1) (after application of paragraph (2)) may be equally divided among the 2 taxable years beginning with the taxable year in which the purchase of the qualified principal residence is made.

``(b) Limitations.--

``(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.

``(2) LIMITATION BASED ON AMOUNT OF TAX.--In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year shall not exceed the excess of--

``(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over

``(B) the sum of the credits allowable under this subpart (other than this section) for the taxable year.

``(3) ONE-TIME ONLY.--

``(A) IN GENERAL.--If a credit is allowed under this section in the case of any individual (and such individual's spouse, if married) with respect to the purchase of any qualified principal residence, no credit shall be allowed under this section in any taxable year with respect to the purchase of any other qualified principal residence by such individual or a spouse of such individual.

``(B) JOINT PURCHASE.--In the case of a purchase of a qualified principal residence by 2 or more unmarried individuals or by 2 married individuals filing separately, no credit shall be allowed under this section if a credit under this section has been allowed to any of such individuals in any taxable year with respect to the purchase of any other qualified principal residence.

`` Qualified Principal Residence.--For purposes of this section, the term `qualified principal residence' means a single-family residence that is purchased to be the principal residence of the purchaser.

``(d) Denial of Double Benefit.--No credit shall be allowed under this section for any purchase for which a credit is allowed under section 36 or section 1400C.

``(e) Special Rules.--

``(1) JOINT PURCHASE.--

``(A) MARRIED INDIVIDUALS FILING SEPARATELY.--In the case of 2 married individuals filing separately, subsection (a) shall be applied to each such individual by substituting `$7,500' for `$15,000' in subsection (a)(1).

``(B) UNMARRIED INDIVIDUALS.--If 2 or more individuals who are not married purchase a qualified principal residence, the amount of the credit allowed under subsection (a) shall be allocated among such individuals in such manner as the Secretary may prescribe, except that the total amount of the credits allowed to all such individuals shall not exceed $15,000.

``(2) PURCHASE.--In defining the purchase of a qualified principal residence, rules similar to the rules of paragraphs (2) and (3) of section 1400C(e) (as in effect on the date of the enactment of this section) shall apply.

``(3) REPORTING REQUIREMENT.--Rules similar to the rules of section 1400C(f) (as so in effect) shall apply.

``(f) Recapture of Credit in the Case of Certain Dispositions.--

``(1) IN GENERAL.--In the event that a taxpayer--

``(A) disposes of the principal residence with respect to which a credit was allowed under subsection (a), or

``(B) fails to occupy such residence as the taxpayer's principal residence,


at any time within 24 months after the date on which the taxpayer purchased such residence, then the tax imposed by this chapter for the taxable year during which such disposition occurred or in which the taxpayer failed to occupy the residence as a principal residence shall be increased by the amount of such credit.

``(2) EXCEPTIONS.--

``(A) DEATH OF TAXPAYER.--Paragraph (1) shall not apply to any taxable year ending after the date of the taxpayer's death.

``(B) INVOLUNTARY CONVERSION.--Paragraph (1) shall not apply in the case of a residence which is compulsorily or involuntarily converted (within the meaning of section 1033(a)) if the taxpayer acquires a new principal residence within the 2-year period beginning on the date of the disposition or cessation referred to in such paragraph. Paragraph (1) shall apply to such new principal residence during the remainder of the 24-month period described in such paragraph as if such new principal residence were the converted residence.

`` TRANSFERS BETWEEN SPOUSES OR INCIDENT TO DIVORCE.--In the case of a transfer of a residence to which section 1041(a) applies--

``(i) paragraph (1) shall not apply to such transfer, and

``(ii) in the case of taxable years ending after such transfer, paragraph (1) shall apply to the transferee in the same manner as if such transferee were the transferor (and shall not apply to the transferor).

``(D) RELOCATION OF MEMBERS OF THE ARMED FORCES.--Paragraph (1) shall not apply in the case of a member of the Armed Forces of the United States on active duty who moves pursuant to a military order and incident to a permanent change of station.

``(3) JOINT RETURNS.--In the case of a credit allowed under subsection (a) with respect to a joint return, half of such credit shall be treated as having been allowed to each individual filing such return for purposes of this subsection.

``(4) RETURN REQUIREMENT.--If the tax imposed by this chapter for the taxable year is increased under this subsection, the taxpayer shall, notwithstanding section 6012, be required to file a return with respect to the taxes imposed under this subtitle.

``(g) Basis Adjustment.--For purposes of this subtitle, if a credit is allowed under this section with respect to the purchase of any residence, the basis of such residence shall be reduced by the amount of the credit so allowed.

``(h) Election to Treat Purchase in Prior Year.--In the case of a purchase of a principal residence during the period described in subsection (b)(1), a taxpayer may elect to treat such purchase as made on December 31, 2008, for purposes of this section.''.

(b) Clerical Amendment.--The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 25D the following new item:


``Sec..25E..Credit for certain home purchases.''.


Sunset of Current First-Time Homebuyer Credit.--

(1) IN GENERAL.--Subsection (h) of section 36 is amended by striking ``July 1, 2009'' and inserting ``the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009''.

(2) ELECTION TO TREAT PURCHASE IN PRIOR YEAR.--Subsection (g) of section 36 is amended by striking ``July 1, 2009'' and inserting ``the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009''.

(d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2008.



On page 431, between lines 8 and 9, insert the following:

SEC. 1607. FHA LOAN LIMITS FOR 2009.

(a) Loan Limit Floor Based on 2008 Levels.--For mortgages for which the mortgagee issues credit approval for the borrower during calendar year 2009, if the dollar amount limitation on the principal obligation of a mortgage determined under section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)) for any size residence for any area is less than such dollar amount limitation that was in effect for such size residence for such area for 2008 pursuant to section 202 of the Economic Stimulus Act of 2008 (Public Law 110-185; 122 Stat. 620), notwithstanding any other provision of law, the maximum dollar amount limitation on the principal obligation of a mortgage for such size residence for such area for purposes of such section 203(b)(2) shall be considered (except for purposes of section 255(g) of such Act (12 U.S.C. 1715z-20(g))) to be such dollar amount limitation in effect for such size residence for such area for 2008.

(b) Discretionary Authority for Sub-Areas.--Notwithstanding any other provision of law, if the Secretary of Housing and Urban Development determines, for any geographic area that is smaller than an area for which dollar amount limitations on the principal obligation of a mortgage are determined under section 203(b)(2) of the National Housing Act, that a higher such maximum dollar amount limitation is warranted for any particular size or sizes of residences in such sub-area by higher median home prices in such sub-area, the Secretary may, for mortgages for which the mortgagee issues credit approval for the borrower during calendar year 2009, increase the maximum dollar amount limitation for such size or sizes of residences for such sub-area that is otherwise in effect (including pursuant to subsection (a) of this section), but in no case to an amount that exceeds the amount specified in section 202(a)(2) of the Economic Stimulus Act of 2008.

SEC. 1608. GSE CONFORMING LOAN LIMITS FOR 2009.

(a) Loan Limit Floor Based on 2008 Levels.--For mortgages originated during calendar year 2009, if the limitation on the maximum original principal obligation of a mortgage that may purchased by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation determined under section 302(b)(2) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)) or section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1754(a)(2)), respectively, for any size residence for any area is less than such maximum original principal obligation limitation that was in effect for such size residence for such area for 2008 pursuant to section 201 of the Economic Stimulus Act of 2008 (Public Law 110-185; 122 Stat. 619), notwithstanding any other provision of law, the limitation on the maximum original principal obligation of a mortgage for such Association and Corporation for such size residence for such area shall be such maximum limitation in effect for such size residence for such area for 2008.

(b) Discretionary Authority for Sub-Areas.--Notwithstanding any other provision of law, if the Director of the Federal Housing Finance Agency determines, for any geographic area that is smaller than an area for which limitations on the maximum original principal obligation of a mortgage are determined for the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, that a higher such maximum original principal obligation limitation is warranted for any particular size or sizes of residences in such sub-area by higher median home prices in such sub-area, the Director may, for mortgages originated during 2009, increase the maximum original principal obligation limitation for such size or sizes of residences for such sub-area that is otherwise in effect (including pursuant to subsection (a) of this section) for such Association and Corporation, but in no case to an amount that exceeds the amount specified in the matter following the comma in section 201(a)(1)(B) of the Economic Stimulus Act of 2008.

SEC. 1609. FHA REVERSE MORTGAGE LOAN LIMITS FOR 2009.

For mortgages for which the mortgagee issues credit approval for the borrower during calendar year 2009, the second sentence of section 255(g) of the National Housing Act (12 U.S.C. 1715z-20(g)) shall be considered to require that in no case may the benefits of insurance under such section 255 exceed 150 percent of the maximum dollar amount in effect under the sixth sentence of section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)).
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Old 02-05-2009, 12:21 PM
 
Location: West, Southwest, East & Northeast
3,446 posts, read 4,733,591 times
Reputation: 850
Quote:
Originally Posted by bcm View Post
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?
No... The Fed is not going to pay the credit ahead of closing.......
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Old 02-05-2009, 12:23 PM
 
Location: North Jersey
11,020 posts, read 15,710,877 times
Reputation: 7058
To much conflicting confusing info
What exactly does "Sunset" the prior credit if this is passed translate to??

Good Grief somebody publish this in plain old english not legalese
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Old 02-05-2009, 12:30 PM
 
Location: Maine!
468 posts, read 1,098,198 times
Reputation: 314
Quote:
Originally Posted by NatasNJ View Post
Big assumption there. My guess most of those people get the check and throw it right into savings or something. Stimulating NOTHING!
Which is what most Americans are doing right now.
whatever. stimulating my bank account!! just kidding. we're buying a house this summer, we'll prolly use the credit towards fixing up the house or something.
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Old 02-05-2009, 12:30 PM
 
Location: Derby, KS
3,832 posts, read 8,028,770 times
Reputation: 1563
I just wrote my congressman.

Last edited by drjones96; 02-05-2009 at 12:52 PM..
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Old 02-05-2009, 12:32 PM
 
1,314 posts, read 2,231,938 times
Reputation: 423
Quote:
Originally Posted by njkate View Post
To much conflicting confusing info
What exactly does "Sunset" the prior credit if this is passed translate to??

Good Grief somebody publish this in plain old english not legalese
If you buy a house in 2009 or 2010 ONLY you are able to get up to a $15k tax credit (spread out over 2 years). It is 10% of purchase price up to $15k. So $150k+ house will get you full credit.

Available to all buyers not just first timers and it is NOT a loan so you will
not have to pay anything back.

And you must live in the house for 2 years otherwise are required to pay back a portion of it.


I think that is a quick accurate summary...
THIS ASSUMES IT PASSES AS IS AND PASSES AT ALL!
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Old 02-05-2009, 12:37 PM
 
72 posts, read 137,736 times
Reputation: 50
Does it change my 7500 for buying a house from an interest free loan to a REAL tax credit?
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Old 02-05-2009, 12:45 PM
 
Location: West, Southwest, East & Northeast
3,446 posts, read 4,733,591 times
Reputation: 850
Quote:
Originally Posted by njkate View Post
To much conflicting confusing info
What exactly does "Sunset" the prior credit if this is passed translate to??

Good Grief somebody publish this in plain old english not legalese
I agree. There is a lot of conflicting information from some [otherwise] reliable sources.

The question for many people (that bought a primary house in 2008) is whether the $15K credit will apply to them...amending the old $7.5k credit. This is where the conflicting information is coming in. I don't know the answer. Some sources say the new $15k credit only applies starting when the new bill is enacted, whereas other sources say it goes back (reverts back) to when the current credit was started, i.e. April 8, 2008. I guess we'll find out for sure later.

My guess (now) is that the new $15k credit will only apply beginning when the bill is enacted. However, from a stimulus standpoint (and not to upset people who bought in 2008) it would make [some] sense to retrodate the $15k credit back to when the current plan was enacted and allow taxpayers to file for the $15k credit on their 2008 tax returns that are due in a couple months.
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Old 02-05-2009, 12:51 PM
 
Location: Derby, KS
3,832 posts, read 8,028,770 times
Reputation: 1563
It would seriously suck if I bought my home in 2008 (not being a 'First Time Buyer') and not be able to benefit at all.
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Old 02-05-2009, 01:07 PM
 
Location: West, Southwest, East & Northeast
3,446 posts, read 4,733,591 times
Reputation: 850
Quote:
Originally Posted by drjones96 View Post
It would seriously suck if I bought my home in 2008 (not being a 'First Time Buyer') and not be able to benefit at all.
Exactly. Or, how would you like to closeout one day before the new bill is enacted? That would suck... They need to backdate the new bill back to when the old bill started. Doing so would help stimulate the economy and not upset buyers that bought in 2008.
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