Home Buying in Orange County>Question Details

Roberto Agui…, Home Buyer in Huntington Beach, CA

I am looking at closing escrow this week. Should I delay closing in order to potentially take advantage of?

Asked by Roberto Aguirre, Huntington Beach, CA Mon Feb 9, 2009

the $15k tax credit of the proposed stimulus package?

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9
Does your annual income exceed the threshold for the credit? It's $150K for married couples filing jointly. Current law allows for a $7,500 tax credit, but it is really a 15 year interest free loan. You pay back $500/ yr for the next 15 years on your taxes. The $15K being proposed right now is not law. The Senate version of the stimulus bill includes it, but the House version does not. The two houses are now going to negotiate the final terms and are expected to come to an agreement by the end of this week. It may or may or may not make it into the final bill.
1 vote Thank Flag Link Wed Feb 11, 2009
Your real estate agent should have informed you about this new tax credit. The new tax credit is 10% of the purchase price of any home, up to $15k. Incidently, this new tax credit has not been signed into law yet. So, I think you should make sure that no loss of monies already in escrow/accumulating daily interest, etc occurs if you decide to delay closing. Your best bet is to consult your real estate/closing attorney for more information. Good luck!
1 vote Thank Flag Link Mon Feb 9, 2009
Thanks Bob for your input. I found some useful info info:

http://blogs.wsj.com/developments/2009/02/09/faq-senate-stim…
1 vote Thank Flag Link Mon Feb 9, 2009
Hi again, Roberto, I'm sure that by now you've received the news that the Stimulus Bill has been passed by the lawmakers and will be signed into law by the President - on Monday - President's Day. As it applies to your situation, the bad news is that the credit has been reduced to $8000. For the good news, it is retroactive to January 1st, 2009, and extended until the end of the year.
Web Reference: http://BobPhillips.net
0 votes Thank Flag Link Sat Feb 14, 2009
Thanks everyone for your inputs. Looks like my escrow will carry over to next week anyway due to the Holiday. Like everyone else, I'll keep watching the evolution of the economic stimulus bill and welcome whatever tax credit I can take. Thanks again.
0 votes Thank Flag Link Thu Feb 12, 2009
That may be the case in Mobile, AL, NonRealtor, but that WON'T be the case in South Orange County.
Web Reference: http://BobPhillips.net
0 votes Thank Flag Link Thu Feb 12, 2009
Wait another year to buy, save another 20% on the price. Good Luck
0 votes Thank Flag Link Thu Feb 12, 2009
See my blog post this morning in the blog section. The credit was reduced to $8000.
Web Reference: http://BobPhillips.net
0 votes Thank Flag Link Thu Feb 12, 2009
Hi Roberto,
I don't think that would make a difference for you - although it hasn't been fully explained. It will probably be OK, as I'm pretty sure it will be a credit on your 2009 taxes, which you won't file for, until this time next year, anyway.
Some people are making it sound as if it is a $7500-15,000. cash grant, that you could use to supplement your down payment.
I don't see it that way, at all. From what I understand it will just be a "tax credit" that you can use as a writeoff or deduction, to reduce your tax obligation. I may be incorrect - taxes are not my main business.
Good luck in your new house!
0 votes Thank Flag Link Mon Feb 9, 2009
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