$15,000 first-time home buyers tax credit

[Xavier434]

Originally posted by: Pneumothorax
It's completely gone now Xavier, Pelosi probably threw it out to make room for some more of her social programs. Stupid B@#$!
"Working to accommodate the new, lower overall limit of the bill, negotiators effectively wiped out a Senate-passed provision for a new $15,000 tax credit to defray the cost of buying a home, these officials said."
LINKY

I doubt it. I think it revolved more around the partisan stance that the Reps from the House took on the issue along with the overall feelings about the price tag of the bill from both side of the lawmaker fence as well as public opinion in general. The 7500 version where you do not need to pay it back is costing 3 billion while the 15k version is costing about 30 billion.

I can't say I blame them about the price, but what doesn't make any sense to me is the way they cut it down. Hell, let's assume that 15k really was overkill in order for the stimulus to be effective and therefore making that amount somewhat wasteful. Fine, but let's work on a real bipartisan compromise shall we? Since an extra 7500 apparently jacks up the price by 27 billion I propose that they lower it to 11k instead which should lower the price to about 15 billion total or so. Great! Now let's work on that 15 billion. HELLLOOOOOO 25 billion in pork or 2.7% of the bill as listed by CNN from the GOP. I am not going to debate about how effective or ineffective those line items are, but I think we can all agree that the first time home buyers tax incentive is by far more effective than anything on that list in comparison.

Lastly, as I stated before, to handle the "threat" of flippers all you need to do is jack up that 3 year limit to 5 years. Also, when it comes to other "loopholes" we have what is listed right here from the IRS website:

Q. Who cannot take the credit?

A. If any of the following describe you, you cannot take the credit, even if you buy a main home:

* Your income exceeds the phase-out range. This means joint filers with MAGI of $170,000 and above and other taxpayers with MAGI of $95,000 and above.
*You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
* You stop using your home as your main home.
* You sell your home before the end of the year.
* You are a nonresident alien.
* You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year.
* Your home financing comes from tax-exempt mortgage revenue bonds.
* You owned another main home at any time during the three years prior to the date of purchase. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another main home at any time from July 2, 2005, through July 1, 2008.

OMGWTFBBQ!

It's a bunch of BS.

 

[spidey07]

LOL! Income caps, those idiots still don't get it. So the people that actually could stimulate housing the most get nothing. The original version would have helped everybody (everybody that bought a house), but this is so watered down it's not going to have nearly the return the original would.

 

[alchemize]

It's quite simple, anecdotes roll up to statistics. My personal anecdote is I'm selling my house. This will help me sell my house, even the watered down version. I will not buy a new house when I move however since I won't qualify because of our silly tax code (moving expense reimbursement added to MAGI) and silly income caps. I will rent instead and continue to watch prices go down.

 

[Xavier434]

Originally posted by: spidey07
LOL! Income caps, those idiots still don't get it. So the people that actually could stimulate housing the most get nothing. The original version would have helped everybody (everybody that bought a house), but this is so watered down it's not going to have nearly the return the original would.

Keep in mind that those restrictions I posted are based on what is listed on the IRS website. That means it is the 2008 version of this thing. I am not sure what exactly is going to change based on the stimulus bill in its final form when it becomes law. The income caps may have changed or have been removed completely.

Give it till the beginning of next week. We should know for certain by then I would think.

 

[Hacp]

Where the hell is my 4.5% rate? I want my rate now, not some 15,000 credit for a home I'm not going to buy.

 

[Xavier434]

Originally posted by: Hacp
Where the hell is my 4.5% rate? I want my rate now, not some 15,000 credit for a home I'm not going to buy.

I can get a rate today for 4.875%. It's not 4.5% but it is damn close.

 

[Hacp]

Originally posted by: Xavier434

Originally posted by: Hacp
Where the hell is my 4.5% rate? I want my rate now, not some 15,000 credit for a home I'm not going to buy.

I can get a rate today for 4.875%. It's not 4.5% but it is damn close.

In the northeast?

 

[Xavier434]

Originally posted by: Hacp

Originally posted by: Xavier434

Originally posted by: Hacp
Where the hell is my 4.5% rate? I want my rate now, not some 15,000 credit for a home I'm not going to buy.

I can get a rate today for 4.875%. It's not 4.5% but it is damn close.

In the northeast?

South Florida actually which is one of the worst places to be in real estate. Me thinks you need to find a better broker.