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$15,000 first-time home buyers tax credit

A

Aimster

Lifer
Me and a co-worker are discussing the proposed $15,000 first time owners tax credit.

What does this mean exactly?

A) You will get a check for $15,000
B) If you paid $8,000 in taxes in 2008 then you will get $8,000 back. Maximum you could get back is $15,000 but since you didn't pay $15,000 in taxes you will only get back $8,000.

Confused.

The $7,500 one they already have out is more of a loan. If it is B then that is not all that exciting...
 
In the current form, it is a refundable tax credit. If your tax liability was $2000 and you had $2000 withheld, you would get $15000 back. If your tax liability was $2000 and your had $1000 withheld, you would get $14000 back. If your tax liability was $0 and you had $2000 withheld, you would get $17000 back. And so on.
 
Originally posted by: sactoking
In the current form, it is a refundable tax credit. If your tax liability was $2000 and you had $2000 withheld, you would get $15000 back. If your tax liability was $2000 and your had $1000 withheld, you would get $14000 back. If your tax liability was $0 and you had $2000 withheld, you would get $17000 back. And so on.
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WHAT THE @*#9.

You kidding me? How absurd. I assumed it was a tax credit against what you may have had to pay, but as refundable tax credit, what in hell, how retarded.

 
Originally posted by: sactoking
In the current form, it is a refundable tax credit. If your tax liability was $2000 and you had $2000 withheld, you would get $15000 back. If your tax liability was $2000 and your had $1000 withheld, you would get $14000 back. If your tax liability was $0 and you had $2000 withheld, you would get $17000 back. And so on.
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Thats why I posted here. I claim what you said but he is saying no It's B.
I can't find a good reliable source. All of them are different
 
My understanding is that it is indeed a credit, upto 10% of the home price. So even if you had no tax liability you get a check for 15,000 when you file your taxes. You have to have it as your primary residence for two years and get this...

There is no income restriction like many of the other gubment handouts, everybody can get it. And as far as I know it isn't first-time home buyers, it's ANYBODY that buys a home.
 
The prior credit was this:

If you bought a house between like 9/1/08 and 7/1/08 and you were a 'first time homebuyer' you get a $7500 refundable tax 'credit'. The 'credit' is actually an interest-free loan that increases your tax burden by $500/year for 15 years ($500 * 15 = $7500). I know, I took it. That's how I got $9100 back this year.

The new proposal as of last week was to eliminate the payback provision if you purchased between 1/1/09 and 7/1/09 (If you bought in 2008 and qualified for the 'credit', you're SOL). So, you would effectively get a $7500 check for buying the house.

As of this week (Wednesday I think) the new proposal was to keep the elimination of the payback provision AND increase the credit from $7500 to $15000.
 
Added:

It appears the Senate passed their version yesterday. Their version was a NON-refundable tax credit of 10% of the purchase price (not to exceed $15000) to ALL homebuyers. The credit can be split and applied against two years' taxes, so if you pay $7500 per year you would effectively pay no taxes for two years. If you pay less than $15000 in taxes over two years you lose the extra credit. You do NOT get a check for the difference (though, assuming you don't change your withholding, you WOULD get a refund of all your withheld taxes for the tax year).

I do not believe the Senate version is the same as the House version. I believe the House version is the $15000 refundable to first time owners. If that's the case, and it passes, what gets signed into law will be some amalgamation of both.
 
Reading sactoking's posts, I have to lawl. What a debacle. I sure wouldn't close on a home right now until I knew the details of this.
 
Originally posted by: sactoking
Added:

It appears the Senate passed their version yesterday. Their version was a NON-refundable tax credit of 10% of the purchase price (not to exceed $15000) to ALL homebuyers. The credit can be split and applied against two years' taxes, so if you pay $7500 per year you would effectively pay no taxes for two years. If you pay less than $15000 in taxes over two years you lose the extra credit. You do NOT get a check for the difference (though, assuming you don't change your withholding, you WOULD get a refund of all your withheld taxes for the tax year).

I do not believe the Senate version is the same as the House version. I believe the House version is the $15000 refundable to first time owners. If that's the case, and it passes, what gets signed into law will be some amalgamation of both.
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Since we are handing out $ how about we do it TARP style and give everyone $15,000 if they have ever been inside or driven/walked by a house?
 
Listen guys, no details are confirmed yet. All we know is that the senate passed an amendment that included a figure involving $15k. All other details are pending confirmation as far as I can tell.

However, there are a shit load of rumors out there which look legit but they really are not or at least they are not set in stone. It is possible I am wrong and something was released that is a little more reliable, but if you find something like that then please post your links because the internet is chalked full of nonsense about it atm.

Things we don't know for sure:

1. Whether or not we have to pay some of it back.
2. Whether or not there is an income restriction
3. Whether or not you have to have it as your primary residence for 2 years.


These are all things being considered but are not set in stone. Most of them revolve around the changes that the GOP wanted to see. The only thing that I saw was that both the dems and reps did agree to the 15k limit increase. I am not counting any of my other chickens until they hatch though.



Originally posted by: Skoorb
Reading sactoking's posts, I have to lawl. What a debacle. I sure wouldn't close on a home right now until I knew the details of this.
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On the contrary, it is a great idea to try to close as soon as you can. Whatever happens will almost certainly be eligible if you close in 2009 before a certain date and the current date set in stone is before July 1st of this year. That date is subject to change though. Right now, finding and closing on homes can take a long time. Especially if you are going for a short sale. If you close on a date past the deadline then you are shit out of luck.
 
Can I get this $15k if I refi my house? If not, can I just sell my house to my neighbor then buy it back and him do it to me? I want to figure out how to get my $15k.
 
Originally posted by: Skoorb
Can I get this $15k if I refi my house? If not, can I just sell my house to my neighbor then buy it back and him do it to me? I want to figure out how to get my $15k.
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Most likely, that sort of thing is why they will probably invoke something where you need to make it your primary residence for XXXX amount of time. Also, as it stands right now with the $7500, you cannot have purchased a home within the past 3 years. That is subject to change too though.

You wont qualify with a simple refinance.
 
Originally posted by: Xavier434
Originally posted by: Skoorb
Can I get this $15k if I refi my house? If not, can I just sell my house to my neighbor then buy it back and him do it to me? I want to figure out how to get my $15k.
Click to expand...

Most likely, that sort of thing is why they will probably invoke something where you need to make it your primary residence for XXXX amount of time. Also, as it stands right now with the $7500, you cannot have purchased a home within the past 3 years. That is subject to change too though.

You wont qualify with a simple refinance.
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Man if they give me a $5k credit on a car, I will buy one, although I suspect auto manufactures would have such good business they'd stop offering their discounts, so it would be a wash.

 
Originally posted by: Skoorb
Originally posted by: Xavier434
Originally posted by: Skoorb
Can I get this $15k if I refi my house? If not, can I just sell my house to my neighbor then buy it back and him do it to me? I want to figure out how to get my $15k.
Click to expand...

Most likely, that sort of thing is why they will probably invoke something where you need to make it your primary residence for XXXX amount of time. Also, as it stands right now with the $7500, you cannot have purchased a home within the past 3 years. That is subject to change too though.

You wont qualify with a simple refinance.
Click to expand...
Man if they give me a $5k credit on a car, I will buy one, although I suspect auto manufactures would have such good business they'd stop offering their discounts, so it would be a wash.
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*shrug*

I thought we were talking about real estate?

I don't know much about all this car credit business. Isn't it mostly rumors or maybe brainstorming with nothing tangible yet like drawing board stuff by the law makers? I have yet to see anything that looked very believable or concerning in writing yet.
 
Originally posted by: Xavier434
Originally posted by: Skoorb
Originally posted by: Xavier434
Originally posted by: Skoorb
Can I get this $15k if I refi my house? If not, can I just sell my house to my neighbor then buy it back and him do it to me? I want to figure out how to get my $15k.
Click to expand...

Most likely, that sort of thing is why they will probably invoke something where you need to make it your primary residence for XXXX amount of time. Also, as it stands right now with the $7500, you cannot have purchased a home within the past 3 years. That is subject to change too though.

You wont qualify with a simple refinance.
Click to expand...
Man if they give me a $5k credit on a car, I will buy one, although I suspect auto manufactures would have such good business they'd stop offering their discounts, so it would be a wash.
Click to expand...

*shrug*

I thought we were talking about real estate?

I don't know much about all this car credit business. Isn't it mostly rumors or maybe brainstorming with nothing tangible yet like drawing board stuff by the law makers? I have yet to see anything that looked very believable or concerning in writing yet.
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Sorry, I slightly hijacked with a diff agenda. I think that real estate credit is completely retarded.

Anyway, it seems the OP has his question answered insofar as an answer is available at the moment.

 
It's

C) Government housing gone awry - a sham - a farce of unbelievable magnitude. It's a way to artificially prop up housing prices until the folks who go into those homes can't afford them and then the cycle starts all over again.

 
You guys can believe what you wish, but I think we can all agree that what this country needs is more people buying stuff sooner than later so we get that cash circulating again right? There are many ways to try and do that and it looks like both the reps, the dems, and our pres agree that the real estate market is a good choice to focus on even though they realize it is not the only option that will get a stimulus. I tend to agree with them, but I won't talk like I have some kind of crystal ball. For all of our sakes, I hope they are right.
 
Originally posted by: Xavier434
You guys can believe what you wish, but I think we can all agree that what this country needs is more people buying stuff sooner than later so we get that cash circulating again right? There are many ways to try and do that and it looks like both the reps, the dems, and our pres agree that the real estate market is a good choice to focus on even though they realize it is not the only option that will get a stimulus. I tend to agree with them, but I won't talk like I have some kind of crystal ball. For all of our sakes, I hope they are right.
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The key is that cash needs to be circulating, implying a circular movement. Trying to stimulate spending won't work if the consumers are afraid that business won't reinvest the cash flow in higher wages, more jobs, etc.

It's kind of a corollary to why liberals pooh-pooh conservatives' calls for corporate breaks. You can't guarantee that the corporations will use the incentives how you intend (see: TARP). Corporate incentives won't work if the companies use the money for other things or if consumers don't spend b/c of it. Personal incentives don't work if people save or pay off debt, or the businesses don't reinvest the money spent into the economy.

People buying stuff will only help if we can encourage companies to hire and increase wages. If not, all the extra spending will do is put our citizens at more risk and require more tax money be diverted to social programs.
 
I dont think I would run out and buy a house in this economy unless you planned on buying a house already. Although if you lived in one of those areas with a lot of foreclosed properties it might be enough to pay for the closing costs. Otherwise why bother?

What they need is a way to get the interest down to 4.5% or to force banks to refinanced variable to fixed rate by underwriting the loan.

I have mixed thoughts on this. I also think if the Govt could help out people with no jobs make it a couple of years or even one year maybe they could find some kind of job, or find a better situation.

Another idea might be some college funds to change your career. When the economy is rough it can be a good time to go back to school.

At any rate, helping people to succeed is better than just a handout. If people cant afford the house payments then no amount of help is going to overcome that. Maybe moving to small rental or a smaller house might be a good thing. I have thought lately that downsizing houses might be the way to success. Bigger is not always better.

At least wait till the ink is dry on the Bill.

Right now I see nothing good coming from this bill.
 
Originally posted by: spidey07
Originally posted by: JS80
so retarded. they should just do a tax holiday for H1 of 2009.
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Yep. That would fix it immediately.
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How about a prepaid Visa/amex gift card with a balance equal to your last 6 months federal tax payments which expires in 6 months. Non-transferable, must be used by holder. Can't use it to pay debt.

hmm that might not work, people will just shit debt repayment with current income. well i guess you can take that restriction off.
 
Originally posted by: JS80
Originally posted by: spidey07
Originally posted by: JS80
so retarded. they should just do a tax holiday for H1 of 2009.
Click to expand...

Yep. That would fix it immediately.
Click to expand...

How about a prepaid Visa/amex gift card with a balance equal to your last 6 months federal tax payments which expires in 6 months. Non-transferable, must be used by holder. Can't use it to pay debt.

hmm that might not work, people will just shit debt repayment with current income. well i guess you can take that restriction off.
Click to expand...
With your visa/amex idea I would just find something I feel will hold value well, maybe a particular console system or something similar and dump all the money into those, then resell on ebay to get the cash.

 
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