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I have a question if we are purchaseing our home this month are we eligible for the tax credit this tax season or next tax season
From www.bloomberg.com:
"The Senate-passed credit for homebuyers, unlike the existing $7,500 credit, isn’t refundable, which means house purchasers who owe less than $15,000 in federal income tax won’t get the full benefit in a single year.
Instead, the Senate provision would allow homeowners to split the $15,000 into two separate tax credits of $7,500 to be taken in successive years. To pay $7,500 in federal taxes, a family of four would have to earn about $92,125, according to Internal Revenue Service tax tables.
No Refund
Lower-income people whose taxes over two years don’t total $15,000 won’t get the full benefit and in many cases would get a better deal under current law, which requires the government to send a check for the difference between taxes paid and the $7,500 credit.
Under existing law, the $7,500 has to be repaid. The Senate bill wouldn’t require the $15,000 credit to be repaid. In its version of the economic stimulus bill, the House agreed only to waive the repayment requirements, though it left the refundable credit at $7,500 and preserved income limits for eligible users. "
I will be doubly mad if the new amendment removes the income limitation. I couldn't claim the 7,500 for my purchase last year due to an AGI that was too high. Grrr! Maybe they'll make it retroactive if it gets passed in time for 2008 tax season...oh wait...too late!
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Since February 2009
Lender rating
Since February 2009
Lender rating
Since February 2009
Lender rating
Since February 2009
There are no income limitations in the current version. Keep your fingers crossed.
Can anyone confirm there are no income limits on this bill? I've read it, but cannot find any reference to limits ...
If you recall, the former law (the $7,500 credit), phased out buyers at $150k and up ...
Lender rating
Since February 2009
Can anyone confirm whether or not the 15K is a refundable credit?
Zillow's COO says its not but does not have a reference. http://www.examiner.com/x-238-Real-Estate-Marketing-Examiner~y2009m2d5-No-payback-on-proposed-15000-tax-credit
I believe the 7.5K is refundable, is that correct?
Thats a big difference between the two. The 7.5K would give cash in hand while the 15K would only take your tax liability down to 0, but not give a refund.
Any insight?
Lender rating
Since October 2009
Lender rating
Since January 2009
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$15,000 tax break vs $7500
dandman
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