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I think the senate version was extending it to Aug 30, so it may be changed before it's finalized. Plus, the industry is pushing really hard to extend it through the end of the year.
My question for anyone who knows...
If I take out a OTC construction loan that starts in April but might not finish until September, would I qualify based on the date?
Hi deemac,
Here's the answer to your question.
5. Instead of buying a new home from a home builder, I have hired a contractor to
construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence
that is constructed by the home owner is treated by the tax code as having
been "purchased" on the date the owner first occupies the house. In this
situation, the date of first occupancy must be on or after April 9, 2008
and before July 1, 2009.
In contrast, for newly-constructed homes bought from a home builder,
eligibility for the tax credit is determined by the settlement date.
Here's the link to the website where I got the information.
It's from the FAQ section.
http://www.federalhousingtaxcredit.com/faq.php#4
We use this website a lot to answer questions here in the
room. And if I'm not mistaken, this site is also linked to
the NAHB site (Nat'l Association of Home Builders).
So, to answer your question directly: the tax credit is based
on the date you occupy the house ---- not necessarily when it's
actually completed. But you must occupy it before the final
cutoff date, which is still up in the air...
Hope this helps.
CanDo
"The right attitude is everything"
@nicemann wrote:
Yeah I already did my taxes and claimed the $7,500, got the deposit in my checking account on Jan 30th. I bought my house back in may 08, so I won't qualify for the none repayment, but hey it's no interest. Plus if I have to sell my house and I don't make any money off of it, I don't have to pay it back. Seems like a no brainer to me.
I agree!
We are finally homeowners!!
Closed May 5th-30 yr fixed at 5.25%.
As others have noted, the change to a tax credit which doesn't require repayment is not official yet.
However, while it's imprudent to count your chickens before they hatch, in this case, those chickens might be countable. The Democrat sponsored bill in both the House and the Senate have the provision in the bills already, and while the Republicans are threatening to kill the Senate bill via filibuster for not having enough of their ideas in it, housing is one of the things they want MORE of in the bill (including a 4% fixed 30 year governent sponsored loan). I believe the Republican sponsored bill (which didn't get consideration, but which through their filibuster threat they may get parts of incorporated into the full bill) actually increased the tax credit substantially (builders and realtor agencies have been calling for a credit indexed to the price of the house which could scale all the way to 22K).
I am pretty sure the $7500 tax credit non-repayment will make it in the stimulus bill. Both the Senate and the House have proposed this revision... bipartisan support is very strong and likely passes when constructing a bill. This stimulus bill may be a climactic event for 2009 which will draw the bottom in the housing market by Fall or the end of the year. Too much good stuff I've been reading lately from Senate/House on how to deal with the housing crisis. Been reading a lot about a below-market mortgage rate, and increased home buyer tax credit (this article says to increase it to $15k).
"The Senate floor debate is set to begin on Monday. Here are three ideas likely to show up in amendments:
Create a 4% mortgage.
Expand home buyer credit to $15,000.
Hold off on foreclosures"
So all of us that purchased in 2008 will still need to pay back the $7500 if this is passed, and all those that purchase in 2009 will not? Either way it's not a bad deal, but it would be nice if they would make it retroactive for all of us that bought in 2008. The jump to $15000 is crazy as well. That would be really nice if they would make that retroactive, but I doubt that would happen.