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11-05-2009, 07:49 AM
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#1
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Moderator Emeritus
Join Date: Feb 2004
Location: minnesota
Posts: 13,228
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New Housing Tax Credit
First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the Senate voted Wednesday to extend and expand the tax credit to include many buyers who already own homes. The House could vote on the bill as early as Thursday.
Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn't owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.
The Associated Press: Congress giving homebuyers a $6,500 tax break
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No more lawyer stuff, no more political stuff, so no more CYA
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11-05-2009, 12:31 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: Independence
Posts: 7,299
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We're looking at this - a stated wrinkle is that the new house must become your new primary residence - wonder if your old house can stay on as a secondary house...
Also wonder about those unmarried couples who own their home "not as tenants in common, but with right of survivorship". If the title for the old home was vested in Bob and Sue, NTCWRS and interest was paid and declared by Bob alone and Bob and Sue file taxes separately, I wonder if Sue could buy the new home, vested in Sue and Bob, NTCWRS and pay and declare the interest on her taxes alone. Wonder if that would pass the sniff test for legit.
It's a tax credit - but what are the restrictions on future sale of the property and/or payback of the credit on sale?
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11-05-2009, 01:34 PM
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#3
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Dryer sheet wannabe
Join Date: May 2006
Posts: 19
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We signed to purchase a new home a few weeks ago. We have sold our old home that we lived in and will close on that one in December. The new home is being built and we will not close on it until mid February 2010. Our income level is way lower than the stated income level and the new home is $300,000.
Will we qualify for the $6500. credit? I have read the bill and I don't know. What does purchase mean? Have you not purchased the home until the closing date? Or is the purchase the date of the contract to build?
I appreciate anyone's thoughts on this.
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11-05-2009, 01:39 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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Crap. We may be renting out our current house to my FIL if he moves down here and buy a new one in town, but we won't have had this one for five years.
As usual, we're part of the demographic that gets nothing but the bill to pay for it all. And to make matters worse, it would probably cause the prices to rise close to $6,500 to account for the tax break we can't get...
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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11-05-2009, 01:57 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Jul 2006
Location: Denver
Posts: 3,519
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So, if I am happy in my home, I don't get anything.
But if I sell it to my neighbor and have them buy my home, we both get $6500? Of course, all the intermediaries like the mortgage companies, title companies and the like take a cut leaving you with not much at the end!
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11-05-2009, 03:36 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 1,691
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Quote:
Originally Posted by walkinwood
So, if I am happy in my home, I don't get anything.
But if I sell it to my neighbor and have them buy my home, we both get $6500? Of course, all the intermediaries like the mortgage companies, title companies and the like take a cut leaving you with not much at the end!
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You got it, the real estate industry has great lobbyists.
TJ
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11-05-2009, 06:34 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Dec 2007
Posts: 4,764
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Why are we giving tax breaks to buy a damn house? Just let the damn things collapse to proper valuations. Stop propping this stuff up.
Hey and I got a property in bubblelicious California. Absurd what some of the houses still go for in my area. Im so disappointed. I do not have children. But I can damn well tell you all this crap will be passed on to the younger generations. Eventually the price will be paid.
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11-05-2009, 07:42 PM
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#8
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,501
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Quote:
Originally Posted by ziggy29
Crap. We may be renting out our current house to my FIL if he moves down here and buy a new one in town, but we won't have had this one for five years.
As usual, we're part of the demographic that gets nothing but the bill to pay for it all. And to make matters worse, it would probably cause the prices to rise close to $6,500 to account for the tax break we can't get...
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And just by chance, if Frank and I can get our houses on the market pronto, this might help us to sell them faster. Then we can move to Springfield, and maybe (if we really get a move on!) buy our houses there with the $6,500 tax credit. So, if we can hurry all of this up, we'll benefit TWICE - - both in selling and in buying.
What a crazy world.
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Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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11-06-2009, 01:45 PM
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#9
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Recycles dryer sheets
Join Date: Jun 2008
Location: San Antonio
Posts: 85
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Does anyone know what tax year they will be looking at for the income phaseout? If we buy a house in 2010, I know that you have the option to claim it either on your 2009 or your 2010 taxes - if you claim it on your 2010 taxes, would the income determination be on your 2010 income or your 2009 income?
We are looking to ER and relocate next year - this year we would be knocked out by the income phaseout, but next year, we would obviously have a radical drop in income!
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11-06-2009, 02:21 PM
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#10
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Gone but not forgotten
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 11,447
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I have been thinking about selling my house . This may give me the push I need .
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11-06-2009, 02:26 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2004
Location: SW Ohio
Posts: 14,404
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I wonder if I could save Congress time by just sending them a synopsis of my finances so they can see exactly what they do not want to subsidize with a taxpayer-funded giveaway. They've gotten it 100% "right" so far and I won't be getting a penny, but why leave anything to chance?
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11-06-2009, 02:33 PM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,186
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__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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