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Asked by Homebuyer, Hershey, PA Thu Feb 5, 2009

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8
Terrence Cha…, Home Owner, Allentown, PA
Thu Feb 5, 2009
Db

The tax credit is based on the Settlement date, not when a sales agreement is signed.

Homebuyer,

It is not known, as Db stated, as to the specifics of this part of the stimulus bill and it won't be known until the bill is signed. Like I previously said, it may be removed from the bill because it will cost a lose of over $15 Billion dollars to the governments pockets.

Terrence Charest, e-Pro
2 votes
Db, Home Buyer, New York, NY
Thu Feb 5, 2009
Hi - I'm in the process of signing on my first home, so this is a rather burning question for me too at the moment.

I've read every news article on the web I could find about this, and 2 important points.

1. Unfortunately, we simply will not know what the plan details are exactly until the legislation is signed, because there will be further debate between congress and the executive as to what to include in the stimulus plan. According to the AP, this would be expected within about 7-10 days. Democrats in congress and President Obama are eager to push it through quickly, so let's hope that happens.

http://www.google.com/hostednews/ap/article/ALeqM5gdDrWnoMue…

The biggest question to me is, what time frame will be covered? If I buy my house before the legislation is enacted, would I still be able to claim the credit?

And is the time of purchase the date I sign the contract, or the closing date?

2. The current tax 'credit' DOES have to be repaid, $500/year for 15 years. It is paid back as this amount added to your yearly federal tax bill. There is a government web site with more details:

http://www.federalhousingtaxcredit.com/

Please folks, if you do have any more info on this, post it here! I am trying to convince my seller to not sign this contract for another 10 days or so (I have already signed). $15k is a lot of money!
1 vote
Terrence Cha…, Home Owner, Allentown, PA
Thu Feb 5, 2009
No grandfathering on this. It's not like a law banning gas cars. That would be grandfathered.

Terrence Charest
0 votes
Homebuyer, Home Buyer, Hershey, PA
Thu Feb 5, 2009
Does anyone know whether the proposed bill is refundable or non-refundable. And, if its non-refundable, will the credit carry over to future years?
0 votes
Kelley Kullm…, , Hershey, PA
Thu Feb 5, 2009
Wat to go Jen Bowman, great answer!

Dear Home Buyer,

Jen gave you all the information that is available right now. I might add that in 1974/1975 they offered a tax credit ($2000) during a difficult time in the housing market and it did help the home selling/buying market recover.

Good Luck!
0 votes
Jen and Mark…, Agent, Holmes Beach, FL
Thu Feb 5, 2009
It isn't official yet, but the proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit, whichever is less. To break it down, if you’re buying a $150,000 home or above you could get a credit of $15,000. If you’re buying a $100,000 home you could get a tax credit of $10,000.

Current law provides for a $7,500 tax break but only for first-time homebuyers. Purchases must be made within 1 year of the legislation’s enactment, and the tax credit would not have to be repaid. It also seeks to prevent misuse by only allowing purchases of a primary residence and by recapturing the credit if the home is sold within two years of purchase.

Stay in your home as your primary residence for 2 years before selling which is a good idea anyway for the capital gains exclusion.

The amendment would sunset the current $7,500 housing tax credit on the date of enactment.

Senator Johnny Isakson of Georgia was pushing for a larger credit that would be available to all buyers of a primary residence, not just first-time homebuyers. He also wanted to extend the eligibility period to December 31, 2009 and waive the repayment requirement.

I hope that helps.

Jen Bowman, Broker Associate
Success Realty
404-456-5024
Web Reference:  http://www.JenBowman.com
0 votes
Ellen Kellner, Agent, Hershey, PA
Thu Feb 5, 2009
I'm with you - I want more information! Not only for my clients but for me as well. $15,000 could prompt me into the home buying market too. Upon hearing it on NPR, I tried to find more info but came up short. I'll let you know as soon as our in-house mortgage company sends me a fact sheet on it!
0 votes
Terrence Cha…, Home Owner, Allentown, PA
Thu Feb 5, 2009
I don't have the specifics yet, I am searching it out. "Supposedly" it extends this to all homebuyers who purchases the home as a primary residence. I do not know yet if this is to be a one time tax break with no repayment or if it's to be paid back like the current credit. I also don't know what kind of time limit there would be. But don't hold your breath, it takes away $15 Billion from the governments greedy little paws so they may take it out of the so called "stimulus" package.

Terrence Charest, e-Pro
0 votes
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