the latest in tax credit news

gmakerley · Posted: Sun Nov 01, 2009 1:34 pm Post subject: the latest in tax credit news

Here's the latest information on the $8000 tax credit for first time homebuyers.

A new proposal by Senate Democrats would extend the benefit, and some people who already own homes could also claim a benefit, if this proposal becomes law.

Existing homeowners, under this proposal, who buy a new home, would qualify for a $6500 credit if they have lived in their prior residence for five years. The first time homebuyers credit, due to expire on November 30, would also be extended under this proposal, to homebuyers under contract by April 30, 2010, with an additional 60 days allowed to close the deal.

Also, income limitations, currently at $75000 for individuals and $150000 for couples, would be increased to $125000 for individuals and $250000 for couples. Naturally, any bill passed by the Senate would also need to be ratified by the House of Representatives.

This is good news, though incomplete. We wish to see a definitive bill passed extending the first time homebuyers credit; whether or not current homebuyers should obtain such a benefit is, of course, up for debate, and there is a great deal of mixed feelings in that regard.

A reminder: this is a good time, again, to let your congressional delegation know just how important this tax credit is to you and to the rest of the nation. You can find all of your representatives online and email them asking for their support. Congress people love to hear from their constituents, so please take the time to do this today.

savior70 · Posted: Mon Nov 02, 2009 4:10 am Post subject:

Hi,

This is a very good proposal, I must say. If it is indeed passed into a law, it will no doubt benefit hundreds of homeowners who have not been able to take advantage of the existing tax credit. It's also good to hear that besides the first time buyers, the current homeowners will also be subject to a partial tax credit of $6500. The income limitation is also proposed to be increased by almost $50,000 for individuals. It sounds too good.

But I'd be even happier if this proposal is actually passed into law. We are yet to see the final outcome. But given the mounting pressure on the Govt. from all quarters for an extension of the tax credit, one can sense there's a high chance of this proposal being passed into law soon.

gmakerley · Posted: Tue Nov 10, 2009 12:19 pm Post subject:

well, we've had closure. i haven't really read all the commentaries yet, so i can't comment fully as i'd prefer to do. what we have seen is that first time homebuyers have until april of 2010 to make their purchase in order to qualify for the $8000 (maximum) credit.

the big news, i guess, is that non-first time homebuyers now can qualify for up to $6500 in tax credits when they make a purchase. this portion of the new bill had never been addressed in its earlier incarnations.

in any event, i'm gratified for my customers that the credit has been extended, and i am hopeful that this will be a boon to the industry in general as well. more, later.

riseabove · Joined: 09 Nov 2009 Posts: 70 12.67 Dollars($)

So the purpose of this is to attempt to stimulate the real estate market? Encourage people to buy more properties, by offering them a tax break if they do?

gmakerley · Posted: Wed Nov 11, 2009 2:40 pm Post subject:

at least in part, yes. the tax credit first appeared (if memory serves me well) in 2008. it was then for a maximum of $7500 and repayable over a 15-year period. the new incarnation in 2009 required no repayment, nor does the new extension.

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