New $6500 Tax Credit Spurring Debate

19 Comments so far

1. Mike Hall on November 10, 2009 10:47 am

   It is indeed an arbitrary number. The ultimate goal is a sustained recovery. The 6500 credit will extend the both an economic benefit and the market-relief-psychology to the move-up crowd, not just the first time buyers. In some measure, this will succeed. The degree remains to be seen. More importantly is that prices must fall to a sustainable/affordable level. When the median home buyer with median income and down payment can afford the median price home, we’re there. Until then, tinkering with tax credits is an artifice. Do the math for your own locale.

2. Aurea on November 10, 2009 11:26 am

   What about those who received a tax credit for first time home buyers in 2008? Do we still receive a tax credit?

3. Joshua Brady on November 10, 2009 11:54 am

   I am very frustrated as I bought my home in January 2008. As a result, none of the tax credits benefit me. I could not take the 2007 tax credit. The 2008 tax credit started in April
   2008-December 31, 2008 and the current tax credit excludes
   me too. In addition, the new 6500 tax credit for
   homeowners who have been in there homes for 5-8 years does not make sense. When are the people that bought their homes between January 2008 - March 2008 going to see a benefit?

4. Peter on November 10, 2009 12:54 pm

   I haven’t heard about the $6,500 tax credit what is it about…how does it work?

   Rip Van Winkle

5. lynne on November 10, 2009 1:29 pm

   it doesn’t say you have to only live in your present home 5-8 yrs it says at least 5years.

6. Doug Strong on November 10, 2009 1:49 pm

   Does the $6500 tax credit include people who bought a home in 2009 or from this day forward?

7. Venu on November 10, 2009 2:45 pm

   Thanks for asking Doug! I have the same burning question: “Does the $6500 tax credit include people who bought a home in 2009 or from this day forward?”

   Does anyone have any info?

8. Diane Tuman on November 10, 2009 2:46 pm

   The IRS updated their site, with more updates planned: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

9. Tammy on November 10, 2009 3:49 pm

   Does this $6500 credit apply to 2009 homes??? Any answers about this?

10. Josh Galvan on November 10, 2009 3:51 pm

    I think people should address what may come when the tax credit expires in April? What are your thoughts?

11. pranab on November 10, 2009 4:39 pm

    Same here. We bought in November of 2008 and now we are not eligible for any of the tax break. Now sure who comes up with these dates.

12. Mike on November 10, 2009 9:42 pm

    So I bought my first house in 2003, married in 2006 and never put my wifes name on our house. Bought a new home in 2009, wife and I, and was told we didn’t qualify for first time buyer credit as I had previously owned a house. Now is looks like we may not qualify for the $6,500 credit as a “married couple” we didn’t live in our previous home for 5 years. Nothing like getting penalized both ways for getting married.

13. John Q. on November 11, 2009 12:33 am

    We need to retro this thing to at least the first of 2009. With todays economy most homes won’t sell prior to the current experation. Ensuring the people get the most out of this offering is the intent. Join me in hoping for the best namely 6500 in my direction for selling in July ‘09.

14. San Diego Realtor on November 12, 2009 6:04 pm

    I think it will definitely encourage move up buyers to buy new homes. First time home buyers and investors have flooded the market and are causing inventory to decrease rapidly. Move up buyers would be selling too so it might help increase inventory levels.

15. Mel Wolf on November 13, 2009 5:39 am

    I have always been against the use of tax credits to encourage certain action. Government does not cut back on its spending, so that means OTHER taxpayers, current or future, are faced with picking up the slack. I have been in my house for 44 years and have no desire to relocate just to generate a 2% (or less) rebate on the cost of a different home.

16. Kraig on November 13, 2009 6:22 pm

    Sounds like people that bought houses between Nov. 2004 and April 9, 2008 get the shaft on any of these tax credits, if you bought in that time period you bought too early for the $8000 tax credit and if you didn’t buy before Nov 2004 you won’t have been in your home 5 years to qualify for the $6500 credit.

17. Paul Seibert on November 14, 2009 9:41 pm

    Response to Kraig: In reading the bill, you need not have purchased your home during or after November 2004 to qualify for the five-consecutive-years of ownership requirement. The bill says that you must have “owned and used the same residence as such individual’s principal residence for any 5-consecutive-year period during the 8-year period ending on the date of the purchase of a subsequent principal residence”. So you would qualify if you purchased a home in November 2001, lived in it for five years, sold it in November 2006, and bought the tax credit home in November 2009. It looks like the tax credit is erroneously being construed as applying only to current homeowners who buy a replacement home, but the language of the bill doesn’t require that you be a current homeowner.

18. R Fitz on November 15, 2009 8:09 am

    What happens if you have to purchase your new home now & your house that is for sale does not sell during the tax credit time? Now you have 2 homes until the 1st sells? This can take months in this economy! The house for sale has been your primary residence for over 5 years & the new home is going to be your primary residence. Do you qualify for the $6,500 tax credit even if the house for sale does not sell until the end of the April 2010 deadline?

19. S Livingston on November 18, 2009 6:33 pm

    Yeah, when do the people who bought homes in march of 2008 get a credit?