$7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

[Anonymous]

I purchased in 8/2008 are saying that now the original 7500.00 is no longer available??

[Anonymous]

Hi rjeps,

Based on how this Senate amendment is written,

the answer is yes --- that's exactly what I'm saying.

The home must be purchased from 1 Jan to 31 Dec 09

in order to qualify for the credit.

Please keep in mind that this is a proposed amendment,

not the final version that goes into law. Lots of things can

change between now and then, so hang in there...

And something else to consider.

I copied and pasted this from the amendment:

*****************************

‘‘(3) ONE-TIME ONLY.—

‘‘(A) IN GENERAL.—If a credit is allowed
under this section in the case of any individual
(and such individual’s spouse, if married)
with respect to the purchase of any
qualified principal residence, no credit shall
be allowed under this section in any taxable
year with respect to the purchase of any
other qualified principal residence by such
individual or a spouse of such individual. 

This question has come up before in the room.

If you're single and you buy a house, once you get

a credit you don't get another one.

If you're married and your spouse qualifies for the loan

on his/her own, once they receive the tax credit (up to 15k)

the other non-qualifying spouse cannot receive one separately.

That's how I read this section of the amendment. If someone

else reads it differently, feel free to chime in...

CanDo

"The right attitude is everything"

Message Edited by CanDoAttitude on 02-04-2009 01:54 PM

[Anonymous]

You would still qualify under the original program that ends Jul 1st '09. The program they are hashing out now looks like they are trying to make it effective Jan 1st '09. So if you want to get some $$$ mark it on your taxes and if you've already filed I believe you just do an amendment and send it in

[Anonymous]

That just doesn't seem right. What about the people who have already filed and some who may have already received their tax return check using a tax preparing service. I thought, but could be wrong that Bush passed the "The Federal Housing Recovery Act" back in July of 2008. I know politics can be a real mess, but I just don't understand how they can change something the IRS has already credited to people. I guess anything is possible in goverment.  ?????????????

[Anonymous]

---

@Anonymous wrote:

That just doesn't seem right. What about the people who have already filed and some who may have already received their tax return check using a tax preparing service. I thought, but could be wrong that Bush passed the "The Federal Housing Recovery Act" back in July of 2008. I know politics can be a real mess, but I just don't understand how they can change something the IRS has already credited to people. I guess anything is possible in goverment.  ?????????????

---

I think those folks would still fall under the original tax credit/loan which is up to $7500 and has to be paid back. All of the new plan is effective in 2009 only.  

[SanDiegoEngineer]

Rjeps - the original $7500 program for you is still available - don't worry about that. 

The new program simply supercedes it for houses purchased this year.  If you were eligible for the $7500 tax credit from last year (which required repayment), and bought when that program was legally applicable, it is still applicable until this new program becomes law (if it does).  You simply wouldn't be eligible for the new 15K tax credit which doesn't require repayment.

[john398]

I did not see anything more on the 5%, so is it 5% down or 3.5%, what bout those that bought in January and didn't know they had to put 5% down ? (I have not closed yet just asking)

[Anonymous]

---

@john398 wrote:

I did not see anything more on the 5%, so is it 5% down or 3.5%, what bout those that bought in January and didn't know they had to put 5% down ? (I have not closed yet just asking)

---

Ohhhhh, that's a great question!

[Anonymous]

Great question, nothing is set stone yet. I think we should have a better idea before the week is over. This is really turning into a mess. If it were me I would try to hold off closing until next week. 15K for FREE

[Anonymous]

+1

After looking at this further, I agree.

If you bought a house last year (2008) under the current program

that requires repayment of the credit over 15 years, you're good.

If you're buying this year (2009), this new program would take precedence

for anyone who buys a home on or before Dec 31st, 2009. Under this

proposed new program, the max tax credit is raised from $7,500 to $15,000

and the money doesn't need to be paid back.

But like I said, this is just an amendment...not the final bill

that goes into law.

CanDo

"The right attitude is everything"

Message Edited by CanDoAttitude on 02-04-2009 02:40 PM

Message Edited by CanDoAttitude on 02-04-2009 02:46 PM