Zillow Advice: Mortgage Rates - What happens to people who bought a house in May of 08. Is the new tax credit for 15000 retroactive

RE: Tammy:You say it's unfair ...

Sat, 14 Feb 2009 06:56:00 GMT

RE: Tammy:You say it's unfair to those who purchased in 2008, at least you are entitled to the $7500. How do you think the people feel that purchased in 2007 or 2006 or 2000 for that matter. They reap no benefits of the $7500 or $15000.

IMHO, be happy with the $7500.

How about someone who bought a house in February of 2008... who gets nothing? what a joke!

Not retroactive.

Tue, 10 Feb 2009 18:13:00 GMT

Not retroactive.

Man, that tax credit would ...

Tue, 10 Feb 2009 12:52:00 GMT

Man, that tax credit would have been great last year. I bought in July and couldn't use the $7500 due to income restrictions. I sold a bunch of stock early last year to use for down payment (boy do I feel like a genius there....the particular stocks I sold have lost 75% value since thyen) and have to write a check to the IRS for almost $4000 as a result. A retoractive nonrefundable credit with no income restrictions would be fine by me!

Gosh, I am also buying a ...

Tue, 10 Feb 2009 07:12:00 GMT

Gosh, I am also buying a home wright now, supposedly we are closing later this week, I wander if I should wait another week or so.... when will this thing enact? :?

http://blogs.wsj.com/developments/2009/02/09/faq-senate-stimulus-bills-home-buyer-tax-credit/This ...

Mon, 09 Feb 2009 20:49:00 GMT

http://blogs.wsj.com/developments/2009/02/09/faq-senate-stimulus-bills-home-buyer-tax-credit/

This Wall Street Journal blog answers lots of the questions here

I am a lawyer and I believe ...

Mon, 09 Feb 2009 20:26:00 GMT

I am a lawyer and I believe the tax credit is not retroactive unless it's revised. It only covers people who bought after the date of enactment and within 1 year of enactment. So lets say the Act is enacted on March 1, 2009, it covers purchases between 3/1/2009 to 2/28/2010.

By the way I also purchased ...

Mon, 09 Feb 2009 00:27:00 GMT

By the way I also purchased a home in May of 2008 and was confused about the $15 000 but now I think the $7500 is a better deal for me and many people who make less than a six figure income anyway.So don't get frustrated anymore that you will get less,you might actually get more.Be happy now:)

The $7500 was an interest ...

Mon, 09 Feb 2009 00:21:00 GMT

The $7500 was an interest free loan. You are sent a check for the full amount minus whatever taxes you might owe. The $15000 is a tax credit. You don’t get a check. Understand? No check. It is simply a tax cut for anyone making more than approximately $92,000 a year. If you make enough money in the next two years (2009, 2010), to owe $15,000 in taxes (and good for you if you did), and you’re buying a home then you get a tax credit, meaning that that $15,000 will be subtracted from your taxes. If you don’t owe that much in taxes, then you don’t get to keep the difference. An easy way to look at it is this; what will you pay in taxes next year? less than $7500? Then you get to keep that amount. More than $7500? Then you get to subtract up to $15,000 from the taxes you owe. It’s pretty easy to see who this new change will benefit.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a6w9LypCRFh0

Thank you for the response. ...

Sun, 08 Feb 2009 16:15:00 GMT

Thank you for the response. I have been following this closesly and understand that BO wants to get this signed by mid Feb. We are buying the home no matter what but if I don't want to leave any benny's that are just laying out there. I will call on Monday and extend close for a week which will not be a problem. If we get a better idea of what the Isakan proposal entails (if passed) then I can adjust back to origanial close date. Fortunately for us the home is empty and the trust that owns the home does not need to close by an specific date (two to four week extension is fine)

Thanks

Albert - No one can tell ...

Sun, 08 Feb 2009 15:56:00 GMT

Albert -

No one can tell you what you should do about a bill that isn't even law yet. To do that just wouldn't be right. What if I tell you "yes, extend your close" and the bill changes or is removed?

That said, I think you'll know before your currently scheduled close of Feb 27. It looks like the Senate will vote on their version of the Stimulus on Tuesday, and it's expected to pass. Then it will have to go to a Conference committee to reconcile the differences between the House and Senate version. Obama is pushing for a bill to sign, and the press is indicating it'll be on his desk around the 16th (but, anything could happen).