Will a $15,000 tax credit for buying a home replace the $7,500 interest-free loan for first-time homebuyers? Economic stimulus must still pass for Isakson's tax breaks.
As Republicans and Democrats dissect and renegotiate Obama’s proposed economic stimulus details, senators on both sides are proposing amendments to the version of the plan that passed through the U.S. House of Representatives. Yahoo! News (via the Associated Press) reported this exciting development through an article titled “Senate OKs $15,000 tax break for homebuyers.” What does this mean for those in the U.S. and how does it relate to the previously authorized $7,500 tax credit?
$15,000 Homebuyer Tax Credit for Buying a Home: Not Just First-Time Homebuyers
Republican Senator Johnny Isakson from Georgia succeeded in proposing a measure that obtained unanimous approval on Wednesday, February 4, 2009. According to a press release on his website, Isakson's amendment to the American Recovery and Reinvestment Act of 2009 would “provide a direct tax credit to any homebuyer who purchases any home…the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislation’s enactment, and the tax credit would not have to be repaid.”
According to the press release, taxpayers could claim the credit on a 2008 federal income tax return. The limitations appear to be that the purchase must be of a principle residence, and the credit would have to be recaptured (read: reversed) if the home is sold within two years of purchase. In other words, the home cannot be a second home like a vacation house or an investment property that isn’t the taxpayer’s primary residence.
How is the New Tax Break Related to the $7,500 First-Time Homebuyer Tax Credit?
Senator Isakson actually spearheaded the original $7,500 first-time homebuyer tax credit that is available to taxpayers who have bought homes since April 8, 2008. This tax break can be claimed on either a 2008 or 2009 tax return, depending on when the home was purchased, but the credit must eventually be repaid over a 15-year period.
The $15,000 tax credit provision in the proposed 2009 economic stimulus package would replace the $7,500 first-time homebuyer tax credit, with the key differences being the increased amount plus the fact that it would not have to be repaid.
Other articles related to Obama's 2009 Economic Stimulus Package:
Senate OKs $15,000 tax break for homebuyers by David Espo, Associated Press
Senate Unanimously Approves Isakson Amendment to Stimulate Housing Market on Johnny Isakson’s Georgia senatorial website
The copyright of the article $15,000 Homebuyer Tax Credit - Senator Isakson in Personal Tax Planning is owned by Lena Gott. Permission to republish $15,000 Homebuyer Tax Credit - Senator Isakson in print or online must be granted by the author in writing.
Does anyone know what dates the law encompasses? I bought my first home on
6/30/2008. Would I be eligible for the $15,000 tax credit?
Feb 5, 2009 7:13 AM
Guest :
Will the $15,000 tax credit be subject to income limitations like the
$7,500 credit was?
Feb 5, 2009 7:26 AM
Guest :
I'm a first time home buyer and just received my refund, I claimed the
$7500 tax credit, if this goes through and gets approved, does this mean I
can file an ammendment and receive the other half?
Feb 5, 2009 7:35 AM
Guest :
I'm a first time home buyer and just received my refund, I claimed the
$7500 tax credit, if this goes through and gets approved, does this mean I
can file an ammendment and receive the other half?
Feb 5, 2009 7:36 AM
Guest :
Apparently those of us who bought a home in 2008 that were supposed to get
a $7500 loan are screwed because that money is now going to be a gift
instead of a loan but only to people that buy homes in 2009. Hopefully this
bill does not pass. First of all, it's unfair for those of us that bought
houses in the beginning of the recession. Also, it should definitely just
be a loan, our country can't afford to be giving $15000 away to every one
who decides to buy a home. It was supposed to help people whose homes have
forclosed, but you don't qualify if you've owned a home in the past 3
years. Finally, it's going to make more people who cannot afford to buy
homes, buy them for the money because people only seem to think about the
present.
Feb 5, 2009 7:37 AM
Guest :
Yes, you would. The date is between april 8, 2008 and either june or july
of 2009 but not of the exact date. I bought mine in august and received the
credit.
Feb 5, 2009 7:40 AM
Guest :
anyone who bought a house in 2008 is screwed.. take your $7,500 interest
free LOAN and sit and wish you had waited to buy
Feb 5, 2009 7:50 AM
Guest :
Those of us that bought homes in 2008 that would have qualified for the
$7500 loan are devastated because we no longer qualify for anything since
this new bill is giving 2009 home buyers $15000 they don't have to pay
back. I'm really upset because we were planning on putting $7500 worth of
improvements into our home to make it worth what we paid for it. This bill
will not be so devastating to thousands of Americans if people that
originally qualified for the $7500 loan could be included in the new
program. I'm just so tired of being responsible, doing my part,
taking care of myself without relying on the governemnt and getting nothing
in return. I was finally going to see something from the government, but
this bill takes that away from me too. Please consider including those of
us that were included in the $7500 loan plan. Otherwise, this is a slap in
our faces.
Feb 5, 2009 7:52 AM
Guest :
I am due to close on my home tomorrow. Feb 6 2009. Should I give up my
ernest money and start looking again?
Feb 5, 2009 8:17 AM
Guest :
If there is an income limitation on this bill just as there was on the
initial $7500 credit then it would be a gross injustice and blatant
re-distribution of income at some artificial government determined level.
How does it make any sense whatsoever?
Feb 5, 2009 8:34 AM
Guest :
I'm in the same boat here. Bought on 7/11/08 and hope i don't get screwed
repaying 7,500 when I could have gotten 15,00 for FREE!
Feb 5, 2009 8:50 AM
Guest :
This states that purchases must be made within one year of the
legislation's enactment. Does anyone know what time frame that is?
Feb 5, 2009 8:55 AM
Guest :
Ditto. Closed on my house 7/25/08 and just filed my taxes for the $7500
last week. Could definitely use the extra 7500
Feb 5, 2009 8:58 AM
Guest :
Bought a main home in the U.S. after April 8, 2008.
Did not own
any other main home within 3 years of this purchase.
Made less
than $95,000 (for individuals) or $170,000 ( for married couples) in
2008
Feb 5, 2009 9:07 AM
Guest :
This law replaces the old First Time Home buyer tax credit for $7500.00. The new law is an extension in a sense that it will increase the amount
to $15000.00 and is not a loan. Its a pure credit. This one doesn't change
the period of the home purchase. Any one who bought a home between April
08, 2008 to July 1st 2009, will receive 10% of home purchase value or
$15000.00, which ever is less. This law might be extended until the end of
2009.
Feb 5, 2009 9:35 AM
Guest :
As posted in your article, "The $15,000 tax credit provision in the
proposed 2009 economic stimulus package would replace the $7,500 first-time
homebuyer tax credit, with the key differences being the increased amount
plus the fact that it would not have to be repaid."
So,
home purchases from 04/08/08 - 12/31/08 will still qualify you for the
$15,000 tax credit? Bus IV
Feb 5, 2009 9:37 AM
Guest :
What's the income limitation look like? Say, if my federal tax was withhold
by no more than $6000, I only get a new home tax credit of that amount
instead of the whole $15,000? Thanks for any clarification!
Feb 5, 2009 9:50 AM
Guest :
Would this $15,000 tax credit simply reduce our tax liability over the next
X number of years, or would we actually get cash-in-hand to cover home
expenses, improvements, etc? Thanks again for the help! Bus IV
Feb 5, 2009 10:08 AM
Guest :
Would this $15,000 tax credit simply reduce our tax liability over the next
X number of years, or would we actually get cash-in-hand to cover home
expenses, improvements, etc? Thanks again for the help! Bus IV
Feb 5, 2009 10:32 AM
Guest :
It's funny to read people complaining that they are only getting $7500
interest free and not the increased credit that just passed. A lot of
whining about being 'screwed', blah, blah. Asking about how you can
"re-set" and get the increased benefit is like buying and
financing a car. Then the auto maker offers 0% financing and you go back
into the dealership and say "Just give me the better deal now."
When the dealer refuses, you then tell everyone how the dealer 'screwed'
you. Regret that you bought too soon? Really? Let's see - you own a
home and the Fed is lending you $7500 interest-free, with no first payment
due for 2 years, and you financed at historically low rates. Wake up. Hey, a lottery ticket I bought a little while back hit and I won $500.
But now my state's powerball just hit for $6M. I'm calling the state and
asking to be "re-set" to the better deal. I got screwed!
Feb 5, 2009 11:00 AM
Guest :
So we firstime homebuyers after april 8, 2008 are still eligible for this
new $15,000 tax credit? I'm seeing different answers here.
Feb 5, 2009 11:19 AM
Guest :
This law replaces the old First Time Home buyer tax credit for $7500.00. The new law is an extension in a sense that it will increase the amount
to $15000.00 and is not a loan. Its a pure credit. This one doesn't change
the period of the home purchase. Any one who bought a home between April
08, 2008 to July 1st 2009, will receive 10% of home purchase value or
$15000.00, which ever is less. This law might be extended until the end of
2009.
Feb 5, 2009 11:36 AM
Guest :
What would stop and existing home owner to sell his home to someone (say
his business), and then buy it back to claim the $15,000 tax credit? Would
this proposal prevent abuse such as this from occuring?
Feb 5, 2009 12:03 PM
Guest :
What a bunch of WHINERS!
If you bought the home and got the
"$7500 essentially 0% deal", then be happy! What about the people
that bought 6 months before that was started? What about 2 years before
that? Hell, whay not anyone between 1975 and now gets to have $15,000 free
money.
It's not "devastating" to anyone! If you got
the last deal, and were able to get into purchasing a house, and now this
is "devastating", then you are already on too tight of a budget
and shouldn't be in a home anyway.
Feb 5, 2009 12:26 PM
Guest :
I think perhaps there are some on here who do not fully understand this
credit. The credit will not be put in place until it is passed as law which
it has not been yet. Once it is made into a law any home bought in a years
time from the passing of the law will qualify for the $15K. It will not be
retroactive. Any home that was bought since April 8, 2008 up until the new
law passes will only qualify for the $7500 credit. The bright spot about
those who will only be able to claim the $7500 is that once the bill goes
into the House of Represenatives there is a good chance that they may waive
the payment schedule and make it a true home credit. Once again
though: if you did qualify for the $7500 you still do, you just will not be
able to qaulify for the $15k. But its money you didnt have before, so be
happy!
Feb 5, 2009 12:43 PM
Guest :
Before everyone goes off the deep end here, let's just take a deep breath
and keep listening to hear what is really going to happen. If this bill
progresses through the legislative process, and becomes law, the $15,000
tax credit will be in effect from the date it is signed, forward. If you
purchased a home after April 8, 2008, you are entitled to a tax rebate of
$7,500 to be repaid in 15 years. However, if this new bill is passed, they
are changing the rules on that as well. The $7,500 will NOT have to be
repaid, which makes an appropriate accomodation to those of you who DID
purchase in 2008. Can't you see this is a gift to you as well? You will
not have to pay it back!! These Senators are trying to get the housing
industry moving.....give people who are approved to purchase, a push to do
just that.....purchase a home! When the housing situation begins to move,
the rest of the economy will start to move as well. Real Estate drives the
economy of this country, so this is why there is so much attention given to
it, and to the Americans who can purchase, but are not. No one is going to
rush out there and buy a home just to get $15,000! Don't be silly. If you
can't qualify, you can't buy!....no matter HOW much money is offered! And
for those of you who have already purchaesd in 2008, don't get greedy or
feel so bad. You are still being rewarded for purchasing a home.....$7,500
you DO NOT have to pay back! Come on America.....stop looking a gift horse
in the mouth and be happy you were able to buy a home, and that you are
being "gifted," because you did!! Relax.....we'll learn more as
the next several days pass. Congratulations to all of you, and God Bless
America!
Feb 5, 2009 12:49 PM
Guest :
New bill covers the purchases retroactively as of Jan 1st, 2009! I am one
of those who gets the stick for doing my part and not sitting on the fence.
Closed on December 30th, 2008. If I were to receive this new "real
credit", I was going to spend it right away for improvements including
insulation to save on energy. I'll wait till next recession...
Feb 5, 2009 1:04 PM
Guest :
I havnt found anyone online really discuss the most importnat issue...The
7500 first time home buyer credit was a "refundable credit"
(rather a loan). Seeing how the 15000 if passed goes through as a
"gift" rather than a loan im sure it will only be a straight
credit not a refundable credit! (no money back just reduction of taxes to
zero and refund of taxes piad throughout the year.) Im not sure on this and
the bill hasnt passed so we dont have the details....
Feb 5, 2009 3:20 PM
Guest :
Why not extend this to people who are homeowners and have proven credit and
work history for a second home. If you really want to move these houses off
the market make them appealing to investor homeowners with capital to buy
them not just first time homeowners who are generally struggling to make
ends meet !
Feb 5, 2009 4:26 PM
Guest :
I can not believe how many greedy are here. I guess people WERE happy with
their $7,500 interest free loan. Now they want $15,000 free. And IF the
government ups it to $20,000 in 2010 I guess the same people will want that
too!!! GREEDY!!!
Feb 5, 2009 6:00 PM
Guest :
If you don't pay $15,000 in federal income tax, would you still get $15,000
added to your return?
Feb 5, 2009 6:23 PM
Guest :
What about just removing the first time buyer requirement for the current
$7,500 rule and making for any primary home purchase? I owned home within
the 3 yr requirement so didn't qualify. I was also serving my country in
the military. I returned to my home state and bought home in Aug 2008. Sure
would be nice if they'd make it a little more flexible.
Feb 5, 2009 6:29 PM
Guest :
Is anybody aware of a timeline for this to pass? I am on the brink of
buying my first home and my predicament is should I wait for this amendment
to pass and capitalize on the $15,000?
Feb 5, 2009 7:17 PM
Guest :
Wow, we have become a nation of WHINERS! Most of you sound like my 6 year
old when she doesn't get her way and utters the statement of "that's
not fair". To be fair, should we just give every American $15,000
just for the sake of being Americans? I am sick of hearing "it's not
fair" because you will not qualify for a free hand-out for buying in
March 2008. I would expect you to happy that you were able to (1) find a
house (2) qualify to buy a house and (3) afford to buy a house without
expecting the gov't to give something for free. REMEMBER: It may be free
now, but our kids and grandkids will pay for this for years to come.....
Feb 5, 2009 10:04 PM
Guest :
Whats unfair is that I bought my house in Jan 08 so I am ineligible by 3
months.
Feb 6, 2009 6:30 AM
Guest :
You know it really sucks for those of us that bought a house in the
beginning of 08 thinking that the market might bounce back. I bought mine
in February of 08. I don't get a credit, a rebate, a loan... NOTHING. Don't
be mad at the politicians if the bill passes. Be mad at the giant
coorporate banks of the world for messing up the first bailout plan. They
should have given that one to the honest hardworking people of America in
the first place. If the banks are still trying to buy $50 million dollar
private jets then they are either A) doing JUST fine or B) Don't deserve
the money if this is the reason they are failing in the first place. Its
bad business practices that got them there. Why did congress just assume
they would change???
Feb 6, 2009 6:33 AM
Guest :
You are truly right we are greedy. Give me my 15,000. If you got a problem
with me wanting more then do something about it. Stop judging people, who
died and made you guys peer mediators? People are complaining because that
7500 has to be paid back but the 15000 doesn't, it's pretty much the same
time frame. So yeah, it's not fair to THOSE THAT RECEIVED THE 7500 and it
is not FREE money because we indeed have to pay every cent back.
Feb 6, 2009 10:59 AM
Guest :
So, as I understand it:
- the $15K proposal is approved widely
by Dems+GOP in the Senate, but they are still arguing over the broader
provisions in the stimulus plan. There were hopes for a deal and a Senate
vote on Thurs or Fri (today), but that looks unlikely. Until they vote,
there's always the chance there will be no deal, and no Stimulus, and no
$15K credit. Hopefully it can go to a Senate vote early next week. -
After the Senate votes it will still need to go to joint committee and then
back to the House for bicameral approval. I have no idea how long that
might take, or if the House will accept the Senate plan, or start all over
again. - Assuming House approves, it goes to Prez.Obama for
signature.
I close on my house next week, Fri 02/13. I'm hoping
it gets through Congress and is Law by then so my closing happens after
it's Law. But I'm not sure if that's necessary. Will the $15K take
effect for homes bought as of Apr 8 2008? Jan 1 2009? Or the day the bill
is signed into law (hopefully next week, in Feb 2009)? I guess we won't
know till the bill provisions are finalized and passed in Congress.
I'm also curious about whether it will be a refundable tax credit
(like the child tax credit), or non-refundable. And whether it applies to
2008 tax return even for homes bought in 2009. And whether there will be
income caps as there were for the former plan.
Wait and see
:)
Feb 6, 2009 6:04 PM
Guest :
This is so frustrating though. We bought a home within two weeks of the
April 8th deadline and as I understand we don't qualify.
Feb 6, 2009 6:51 PM
Guest :
I think if everybody knew that this tax credit is non-refundable they
wouldn't be nearly as excited. My tax liability is nowhere NEAR $15,000 and
I don't think most people who might need help with their new home have that
much either. For purely selfish reasons, I hope they keep the $7500
refundable credit. I can't act like I know which would help the economy the
best, though.
Feb 7, 2009 7:36 AM
Guest :
I couldn't agree more with those who said "PLEASE STOP WHINING"!!
You GLADLY took the $7500 loan because it was the best deal available at
the time. Now it looks like there may be a better deal on the way and your
response is "that's not fair". I didn't see anyone TURN DOWN the
$7500 simply because it wasn't fair to the people who bought a home before
that amount was available.
Why don't you take your $2000 Dell
computer (from 1997) back to Dell and ask them if they'll give you a refund
because there is a better deal available now? You got the best deal
available at the time...be happy with it.
And to the person
who said "who made you the peer mediator?" I would suggest that
if you have the right to come on here and waste our time with your whining,
we have the right to come on here and respond to your whining. If you
didn't come here with the expectation of receiving feedback then you should
have kept your comments to yourself and you wouldn't have gotten any
feedback.
To those of you who got the $7500 loan that will
most likely become a gift...congratulations!! To those of you who may get
the $15,000 credit...congratulations!! To those of you who can't be happy
at someone else's good fortune...GROW UP!!!
Feb 7, 2009 12:10 PM
Guest :
Follow this link and read pg. 2 line 20 through pg. 3 line 2. (It's only 8
lines.) http://isakson.senate.gov/Amdt_106.pdf It appears that
depending on the DATE that the legislation is actually ENACTED, you will be
entitled to the 15,000. Otherwise, it's just the 7,500 loan.
Feb 7, 2009 1:22 PM
Guest :
read this... it is the exact amendment. yes it will be allowed to act on
2008 returns and can be added to it if you've done the taxes already if you
buy in 2009. I hope this goes through, I will wait to close untill it
does! http://isakson.senate.gov/Amdt_106.pdf
Feb 7, 2009 6:45 PM
Guest :
To all with questions.... As many of you are asking, here is a truthful
answer to your question: If you purchased your home already, you will NOT
be entitled to the 15,000 credit that has yet to be passed. The new credit
will run from the day this legislation is passed until 1 year from that
date. Anyone purchasing a home in that timeframe will be eligible for the
15,000 credit (does not have to be paid back). If you bought your home
prior to the passage of the proposed legislation, you may only claim up to
the 7,500 credit either on your 2008 or 2009 tax return. This credit has to
be paid back, however, I would look for the senate/house to possibly
include a provision that would allow a homeowner to not have to pay it
back(not yet included in the proposed legislation). The new 15,000 CAN be
taken on your 2008 or 2009 tax return as well, as the legislation allows
you to retroactively take the credit on you 08 return as long as you
purchased the home after the passage of the legislation in 2009(if it gets
signed into law). Hope that answers all questions, and I think it is
painful for some of you who have already claimed the 7,500 credit, but
there are plenty of people out there who are upset that they bought their
house before that 7,500 credit was available to them. Gnite all.
Feb 8, 2009 5:55 AM
Guest :
You are eligible for $15k: - IF it becomes law - IF you close on
your home purchase AFTER the date of enactment
I'll bet all you
people whining about the $7500 loan were jumping up and down with glee when
you got the money....wheeee! we just got a $7500 no interest loan! Now you
want to complain. I'm happy for the $7500 I did get, if I have to pay it
back, then so be it. If I don't, then it's icing on the cake. Quit your
crying and be glad you have a roof over your head and food and clothes for
your family.
Feb 8, 2009 6:02 AM
Guest :
The $15k provision was added in by Republicans, specifically designed to be
a gift for wealthier people. Once again, the GOP is acting on behalf of the
affluent. It doesn't help the majority of people who really NEED that kind
of money, all it does is put $15k into the pockets of those who already
have plenty, and could have bought their home just fine without it. So
don't get too excited about something you probably don't even qualify for.
Most Americans would be better served by the current $7500 plan.
Feb 8, 2009 1:04 PM
Guest :
Several "quests" are talking about both the $7,500 and $15,000 as
gifts and/or free money, nonrefundable. I would like to remind everyone
that does pay taxes, taxes are your money confiscated by the the state or
gov. Either progam allows "you" to keep more of "your"
money. For the retard talking about the $15,000 only being for the
affluent, I bet you don't own a home, or if you do don't pay any taxes, and
probably receive some type of gov aid and buy into that global warming hoax
as well. Look at who pays the most taxes--the so-called affluent--you can
not get a tax cut unless you pay taxes, oops; forgot Pres. Obama is
changing this concept.
Feb 8, 2009 1:40 PM
Guest :
It is ridiculus that they don't extend this 15,000 back to when the
original 7500 was put in, I bought a house in November thinking I would
qualify for the credit when I come to find out that it is only for first
time home buyers, and I am a second time home buyer so now I get no credit
and have to pay in on my taxes, they should extend the date back, it is
unfair!
Feb 9, 2009 6:11 AM
Guest :
Only available for those who purchased homes Jan.1, 2009 to Dec. 1,
2009.
Feb 9, 2009 6:17 AM
Guest :
You are truly right we are greedy. Give me my 15,000. If you got a problem
with me wanting more then do something about it. Stop judging people, who
died and made you guys peer mediators? People are complaining because that
7500 has to be paid back but the 15000 doesn't, it's pretty much the same
time frame. So yeah, it's not fair to THOSE THAT RECEIVED THE 7500 and it
is not FREE money because we indeed have to pay every cent back.
Feb 9, 2009 6:21 AM
Guest :
Stop whining about the Whiners.
Feb 9, 2009 2:33 PM
Guest :
Apparently, if you bought a home in 2008, you would have been eligible for
the $7,500 credit; which BECOMES the $15,000 (OR 10% of purchase price;
whichever is less) automatically. If you didn't file for the $7,500 credit
-see if you can (amended tax return) - so, you can get the $15,000 credit
when it becomes law. And remember, the $7,500 credit had to be paid back -
it looks like the $15,000 credit will NOT have to be.
Feb 9, 2009 5:50 PM
Guest :
Funny, people talk about whats right for this country in one sentence then
make selfish claims about being left out of the increased tax credit in the
next. So what is it? Are you happy that you bought a house and contributed
to the economy, albiet a little prematurely? Or are you just selfish and
you want equitable tax breaks and to hell with everyone else? How far
should it go back? To cover all the whiners who think that this is a
"slap in the face". Get over yourselves! This is about the
country, the economy, and the greater good. Not about you and your
selfishness.
Feb 9, 2009 7:55 PM
Guest :
From what I am reading from the sites (which many of you should do), the
7500 loan is from april '08 to july 1st '09. This has to be repaid. What
they are trying to pass, is that if the house was purchased after jan 1st,
'09, it is the house of reps that wants 7500 that does not have to be
repaid, the senate is pushing for doubling the amount to 15000 that does
not have to be repaid. Neither of these will come into play until it
becomes law. As of now, only first time buyers (new w/in 3 years) have
access to 7500 loan until july 1st.
Feb 9, 2009 11:33 PM
Guest :
I purchased a home 8/08 with a Nortgage Revenue Bond loan, I do not
currently qualify for the 08' $7500 credit, but will I qualify for it
after/if this new bill passes? Anyone Know??
Feb 10, 2009 6:58 AM
Guest :
COPY AND EDIT THIS LETTER, SEND IT TO THE STIMULUS CONFERENCE COMMITTEE
(EDIT TO YOUR UNIQUE SITUATION FIRST):
Dear Senator <>: I write today to thank Congress for its hard work on a much needed
stimulus package and to express my concern about the $15,000 tax credit for
home buyers. Last week, Senator Isakson’s amendment to the stimulus
replaced a $7,500 refundable tax credit with a $15,000 non-refundable one.
The amendment is designed to encourage home purchases by higher-income
households with a reduced risk of default. What the amendment fails to do
is encourage purchases by those of us who are responsible and
credit-worthy, but whose tax liability is nowhere near $15,000. Even the
provision that allows tax payers to spread the credit evenly between two
years is insufficient, as many of us have liabilities that are still only
half the allowable credit. To make this incentive truly work for the
American people and the American economy, the $15,000 credit must be made
fully refundable to credit-worthy homebuyers at or above a certain income
level. In my own case, I work in the education field, which is not
well known for its high salaries. Despite this, I have waited and saved
been frugal with my spending for some years so I might purchase a home. In
March, I will close on a foreclosed property in my hometown. My new home
will need much work, as many foreclosures do. In most cases, the purchase
of a home is the largest investment an individual will make in his or her
lifetime. The spending that goes with it – spending for furnishings,
improvements, renovations, maintenance, and appliances – infuses the
economy with thousands of dollars per home. Passage of the current
bill will reduce my tax refund by $3,500 over the current incentive. That
doesn’t make me excited to go out and spend. I could only dream of making
enough money to recoup the entire credit in this bill, but what does it say
to give a full $15,000 refund to someone making $122,000 a year, but less
than a third of that amount to someone like me? Does that individual need
the money more? Will they actually spend much of their refund? Is it
sending the right message to the true middle class? I’m not sure I can
answer those questions, but I know that if Congress gave $15,000 to an
individual making $45,000 a year, they would put it to good use! By
making the $15,000 credit fully refundable would allow me and others like
me to stimulate the economy with purchases of furn
Feb 10, 2009 11:14 AM
Guest :
Those of you who purchased a home and received the $7500 0% loan are not
the ones getting screwed. I closed on my house on 1/15/09 and under the
current proposal will receive NOTHING! I am not a first time home buyer so
I don't qualify for the $7500 and since the $15000 is not currently
retroactive I GET $0. I hope you all enjoy spending my tax dollars!
Feb 10, 2009 11:19 AM
Guest :
"Several "quests" are talking about both the $7,500 and
$15,000 as gifts and/or free money, nonrefundable. I would like to remind
everyone that does pay taxes, taxes are your money confiscated by the the
state or gov. Either progam allows "you" to keep more of
"your" money. For the retard talking about the $15,000 only being
for the affluent, I bet you don't own a home, or if you do don't pay any
taxes, and probably receive some type of gov aid and buy into that global
warming hoax as well. Look at who pays the most taxes--the so-called
affluent--you can not get a tax cut unless you pay taxes, oops; forgot
Pres. Obama is changing this concept. "
I agreed with this
guy until he made the Global Warming hoax comment. It appears you are the
retard.
Feb 10, 2009 12:50 PM
Guest :
So how did it turn out now that its passed? 15k for all buyers? Did they
repeal the need to payback the previous 7500 credit? Can someone in the
know summarize the details and post here plz? Thanks in advance!@
Feb 10, 2009 12:58 PM
Guest :
I'm a first time home buyer and closed on my home on 12/22/2008. Yes, I'm
very happy and thankful for the $7500 tax credit. But who wouldn't want to
double that and not have to pay it back? I went out and bought a home when
no one else was, when people were losing jobs, when there seemed to be no
hope for the housing market. I took the risk and now I'm getting screwed
because of 8 days!!! 8 days!!! It is not fair. Call me a whiner and greedy
if you want. I could've really used the extra money. They can pass the
$15000 but I actually hope they make those people pay it back to keep it
somewhat fair.
Feb 10, 2009 6:16 PM
Guest :
You wrote this and had the nerve to call me a retard? Wow.
"I would like to remind everyone that does pay taxes, taxes are your
money confiscated by the the state or gov." This would really be a
fabulous place to live if the govt didn't "confiscate" our money.
Mental midgets like yourself would be very unlikely to survive.
"For the retard talking about the $15,000 only being for the
affluent, I bet you don't own a home, or if you do don't pay any taxes, and
probably receive some type of gov aid and buy into that global warming hoax
as well"
I do own a home, and as a member of the US
Military for the last 24 years, I have been paying my fair share of taxes
and protecting your sorry butt all at once. Get a life moron, and think
before you type, if that's not too complicated for you.
Feb 11, 2009 7:48 AM
Guest :
I just read this clarification and hopefully this clears up some
speculation here: The fact is that the amendment would essentially
wipe out taxes for a large proportion of home-buyers. If you only pay $8k
in taxes, you’re essentially tax-free. Same as if you pay only $3K in
taxes, or $15K in taxes. No difference. The only people who wouldn’t get
all of their taxes wiped out with a home purchase would be those people
paying over $15K in taxes, essentially the wealthy amongst us.
Feb 11, 2009 2:51 PM
Guest :
From Bloomberg on 11 Feb:
'Asked what a proposed $15,000 tax
credit for homebuyers looks like in the compromise plan, Baucus said, “not
much.” He said that proposal has largely been dropped, though he didn’t
provide details'
15k idea probably will be dropped from the bill
altogether. The 7500 for 1st time buyers (That includes anyone who hasn't
owned/bought in the last 3 years) is still in effect until July 09 I think?
Highly likely that the requirement to pay it back will also remain in
effect. So all the b*tching and moaning was for naught it would appear.
Feb 16, 2009 7:06 PM
Guest :
Why did they pick April 8, 2008? I bought my home in February and lost my
job in November. I really need that $7500 and I can't get it? I'm going to
lose my house! I'm a first time home buyer and unemployed yet I don't
qualify for a loan that would bail my butt out. Are there any other loans
that I would qualify for?
Feb 18, 2009 2:53 PM
Guest :
I'm glad some people were able to get that credit. I was one of the unlucky
ones who got caught up in the Country Wide fiasco. We don't qualify for
anything because we chose to use our retirement and savings to keep our
home and now I am disabled and our income is no longer enough to pay our
mortgage starting next month but we can't get a loan modification because
we made our mortgage payments. We will lose our home but the best of luck
to you who can get money!
Feb 28, 2009 9:30 AM
Lena Gott :
Want to learn more about the $8,000 first-time home buyer tax credit,
$7,500 tax break, and the once-discussed $15,000 version? Here is a list of
5 articles on these subjects:
Feb 4, 2009
