Potential new stimulus credit of $8000

[MsKiwi]

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@SanDiegoEngineer wrote:

Here's the official link:

http://www.finance.senate.gov/press/Bpress/2009press/prb021209.pdf

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Thanks for the link. This could possibly work to my favor as I wasn't planning on buying before Sept-Oct of this year. I thought I was going to lose the chance of this credit.

[damnedanddetermined]

But, this is for "first-timers" only, right?

[john398]

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@damnedanddetermined wrote:
But, this is for "first-timers" only, right?

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Yes

Refundable First-time Home Buyer Credit. Last year, Congress provided taxpayers with a refundable tax credit that was equivalent to an interest-free loan equal to 10 percent of the purchase of a home (up to $7,500) by first-time home buyers. The provision applies to homes purchased on or after April 9, 2008 and before July 1, 2009. Taxpayers receiving this tax credit are currently required to repay any amount received under this provision back to the government over 15 years in equal installments, or, if earlier, when the home is sold. The credit phases out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 in the case of a joint return). The bill eliminates the repayment obligation for taxpayers that purchase homes after January 1, 2009, increases the maximum value of the credit to $8,000, and removes the prohibition on financing by mortgage revenue bonds, and extends the availability of the credit for homes purchased before December 1, 2009. The provision would retain the credit recapture if the house is sold within three years of purchase. This proposal is estimated to cost $6.638 billion over 10 years.

[Lehrer29]

Does the new stimulous of 8,000 allow one to count the credit on your 2008 taxes so you don't have to wait until next year to get your money? I know the 7500 was written that way.

[Anonymous]

Does the new stimulous of 8,000 allow one to count the credit on your 2008 taxes so you don't have to wait until next year to get your money? I know the 7500 was written that way.

Since it's going back to Jan 1 purchases, my guess would be that it is since people have already purchased under that guideline (and some even filed taxes); otherwise, it would retroactively affect people negatively.  Nothing is specifically addressed in that which further leads one to believe they change the ability to file on 2008 taxes.  Remember, they're amending the existing credit so if they don't change something it is what it was to begin with.

Message Edited by Daniel885 on 02-13-2009 09:05 AM

[ralbusta]

Just read through the conference report and, yes you still can treat the purchase as made on Dec. 31, 2008 and amend your 08 taxes to get the credit and any refund due.

[bmagnant]

Does it still define first-time homeowner as not having owned a primary residence in the last 3 years?

Brent

Message Edited by bmagnant on 02-13-2009 06:49 PM

[Lehrer29]

The senate just passed the bill! It will be headed to the President's desk by Monday! YIPPY!

[Anonymous]

we filed our taxes on turbo tax freedom for free from the IRS. according to it we were not eligable because we purchased a home on 1/5/09. now i go back into it and it says we are, but only for 7,500. i dont care if it's 7,500 or 8 grand, i can use the money either way...what bugs me is i now have to "amend" both the returns (we are not married) to get the refund...

has anyone ever amended a return before? turbo tax walked me through it but i am a dummy and want to make sure i dont screw up. is it as simple as fill it out print send?

oh, and how long do i have to wait for the refund? if we chose to EFT for the refunds, will they do that for the amended refund as well>

i don't mind the wait for the cash, but i want to make sure i dont screw it up...THATS ALOT OF MONEY LOL

[Lehrer29]

The President has to sign it first and then it has to be enacted into law. The tax software and websites won't update their software until it is "official." That is why you are only getting it to show the 7,500 credit. I would wait a couple of weeks until the tax software companies like turbotax update their systems to take the 8,000 credit.