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Yes there are SEVERAL ways to exploit this credit. And one of the reasons it is a stupid idea. Make interest rates LOW vs giving a credit. Oh yeah they have already tried that and it did nothing.
This credit is absolutely stupid, but if they want to give people like me free money I am all for it. I doubt it should be retroactive as the whole point of this thing is to encourage future home purchases. Obviously, people who bought in the past would love to get extra money but what does that accomplish? It doesn't get any more homes sold?
The whole point of this provision is to encourage future home purchases, not reward people who bought in the past year.
Not sure how long-last I heard retro to Apr 08 and good til July 09.
It is not retroactive. Not even to the first of this year.
And to answer some other questions about the credit this is not a rebate. Some people think that if you are going to get $1,000 back on your tax return you would get $16,000 back. Not true. What you paid in taxes last year is what you would get back up to $7500 the first year. If you only paid $5,000 in taxes you will only get $5,000 back. You won't get the full $15,000.
The point of this bill is to get people who haven't YET bought to go out and buy. Those who bought in 2008 didn't jump start the economy enough so they are trying to get many more people to go out and buy. I wish is wasn't this way at least for me because I am closing on a house next Friday and if this isn't signed into law by Thursday I will miss out by days.
What you paid in taxes last year is what you would get back up to $7500 the first year. If you only paid $5,000 in taxes you will only get $5,000 back. You won't get the full $15,000.
I read something different, but now I can't find it, shoot! Anyways, what I read though, is that even if your total tax liability for the year was $5k, you would still get a $15k rebate. I'll see if I can find that link again...
I read something different, but now I can't find it, shoot! Anyways, what I read though, is that even if your total tax liability for the year was $5k, you would still get a $15k rebate. I'll see if I can find that link again...
That wouldn't be a credit it would be a gift. There is a very good article on wsj.com. Read some of the messages at the bottom. They are very helpful.
It says that if your tax liability is not 15,000, then you have the option of spreading it out over 2 years like you said, but it's not limited to $7500 in one year. You can claim all $15,000 in one year if your tax liability was equal to or higher than that amount.
It is not retroactive. Not even to the first of this year.
And to answer some other questions about the credit this is not a rebate. Some people think that if you are going to get $1,000 back on your tax return you would get $16,000 back. Not true. What you paid in taxes last year is what you would get back up to $7500 the first year. If you only paid $5,000 in taxes you will only get $5,000 back. You won't get the full $15,000.
The point of this bill is to get people who haven't YET bought to go out and buy. Those who bought in 2008 didn't jump start the economy enough so they are trying to get many more people to go out and buy. I wish is wasn't this way at least for me because I am closing on a house next Friday and if this isn't signed into law by Thursday I will miss out by days.
You are absolutely correct. I was originally told wrong by the Senator's office staff.
The tax credit only applies to what the taxpayer owes in taxes. There is a 2 tax year window in which the tax credit can be used. It is NOT A CASH REFUND or REBATE. Thus, if you owe $5K in taxes the tax credit reduces your taxes to zero...and the balance of the tax credit is carried over one more year. There is NO CASH REFUND or REBATE.
You guys are really making this overly complicated.
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I am going to exploit the hell out of this credit
