Zillow Advice: Buying Process - Should I postpone my closing tomorrow to see what happens with the 15k tax credit?

Associated Press is reporting ...

Wed, 11 Feb 2009 20:43:00 GMT

Associated Press is reporting the 15,000 tax credit was stripped out of the bill in committee after the Office of Management and Budget estimated the cost to be far higher than was originally estimated. The $7,500 tax credit for first time home buyers is still in effect.

http://www.irs.gov/newsroom/article/0,,id=187935,00.html

Tell him what's he won jim: ...

Wed, 11 Feb 2009 21:10:00 GMT

Tell him what's he won jim: NOTHING!!!!! Get the 7500 if you can and run!!!!

There will be no 15K housing ...

Wed, 11 Feb 2009 21:08:00 GMT

There will be no 15K housing tax credit; it's dead.

What penalties do you pay ...

Wed, 11 Feb 2009 21:07:00 GMT

What penalties do you pay for delaying the closing?

well from what i hear the ...

Wed, 11 Feb 2009 20:36:00 GMT

well from what i hear the senate is pushing for that to be stricken from the bill or shrunk to save that 37billion or whatever it is, so the standard caveat applies, but yes, if at all possible. you are making the choice between:

a) a $7500 loan repaid over 15 years

b) a tax holiday if you made ~75k last year or the ability to stretch it over 2 years and get 2 tax holidays as long as you make ~60k more or less. if you make less than 40k you WILL NOT get the full 15k, though you will get your two years taxes back, just not above what you paid in.

in almost ALL cases (even if you paid less than 7500 in taxes over the last 2 years combined) b) is exponentially superior to a)

I think it was thrown out????? ...

Wed, 11 Feb 2009 20:23:00 GMT

I think it was thrown out????? I close on Friday

I would put it off a week ...

Wed, 11 Feb 2009 20:14:00 GMT

I would put it off a week if possible. The goal right now is to get the stimulus bill signed by Monday. Give it a couple more days for luck. A week from now there should be much more clarity

If your decision is based ...

Wed, 11 Feb 2009 18:53:00 GMT

If your decision is based on needing the 15K then delay it by all means. Very likely it will be scaled back to original amount to make room for "House Spending" like giving your paycheck away to combat STD's in Zimbabwe