When I came home from work tonight I thought about the post I intended to write, about the new details regarding the homebuyers tax credit after the Senate and House of Representatives agreed to a common stimulus package.Unfortunately, the text of this compromise is not available to the public. Instead, I will take a second to update you on what I have learned with the intention of providing a comprehensive post over the weekend as details emerge.
Here are the details as I understand them:
• The credit will be for first-time homebuyers only, not all homebuyers as proposed by the Senate.
• The credit will be for $8,000, above the original House proposal of $7,500 and below the Senate proposal of $15,000
• The credit will not have to be repaid
• The credit will be capped at certain income levels
• The credit is refundable, meaning it can exceed your tax liability in a given year
• The credit can be claimed on your 2008 taxes
As details become available new information will be posted on StupidCents.com. Check back often.
Related posts:
[...] bookmarks tagged credit Details Scarce on Compromised Homebuyers Credit | … saved by 3 others SasukeLover2007 bookmarked on 02/13/09 | [...]
Do you think this will go into effect the day the bill is signed, or that it can be applied if you bought a house under the same deadline as the $7500. It is really not fair to people who get the 0% interest loan then, with newer buyers getting $8K for free. You would think they would allow the $7,500 people to get off the hook as well….
I saw the text of the bill this afternoon. The housing part is in part b.
You can download both parts at :
http://i.cdn.turner.com/cnn/2009/images/02/13/stimulus.a.pdf
http://i.cdn.turner.com/cnn/2009/images/02/13/stimulus.b.pdf
The bill would be effective for anyone that purchases a home January 2009 and December 2009. It is in Part 1, Section 1006, and you must stay in the property for 36 months (3 years) to not repay it. There are special cases for people within the District of Columbia. It is pretty simple to read if you understood the way the $7500 worked.
I think that is so unfair. My wife and bought our home knowing that usually there is a tax credit for first-time homebuyers. I was hoping that when filing, we would get a coulple thousand. But when I heard it would be up to 75K, I was so happy and ALMOST took the credit when purchasing the home, but decided to wait. Am I gald I did!! Thank God I was able to have the seller pay ALL closing costs and get into the house for nothing (besides inspections). Also, I made sure that we got into a nice home (cheaper than what I was paying for rent…so I would be able to pay for it and hopefully early). But NOW…the tax credit sucks and if I had waited just a few months, I would have not had to pay it back…well, I don’t have to because I didn’t take it in the first place.
In the meantime, we will se lawmakers give themselves pay raises, continue to bail out businesses and not truly help those who need help…the common man. Glad to know that God is the one that I can rely on!!
Well, I just got back from my CPA and I will take that “credit”! Seems that many people are misinformed…YOU DON’T PAY BACK EVERY DIME!!! My wife and I were told that anyone who akes the “loan” will only pay back the percentage of your tax bracket…if you are in the 15% tax bracket, then you will pack back (over 15 years) 15% of $7500. In other words…my wife and I will only be paying back about $1125!!!
Who wouldn’t take a loan where you don’t pay ALL of the loan back and on top of that…at 0% interest!?!?!? I will take that…have’nt ever said this before but I will now…”Thanks, Bush!” It may not be as good as Obama (don’t have to pay ANYTHING back, BUT this is better than nothing. Good thing I waited to close after the first of May!!!