Congress had a great opportunity to really jump start the housing market with a $15,000 tax credit open to everyone and anyone. Its hard to believe they thought it would cost too much. This move could have saved people tons of money and would have helped us with the bank bailout. Any incentive to increase demand is welcome.
I would have made it very simple and open to everyone buying a home or condo. Why put all these strings attached when we need to increase demand. It would lighten the load on sellers and banks costing American less in the long run. Incentives do work and when we need immediate spending this is the fastest way to make it happen. Much less than the bailout of Citi Bank alone by 10’s of billions. Where are the Nation’s thinkers?
However if you fall into this niche its something to take advantage of. Its like free money along with the tax advantages of owning.
“The good news is that there is an $8000 tax credit available for first time home-buyers! On Friday, both the House and the Senate passed the American Recovery and Reinvestment Act of 2009 and President Obama is expected to sign it into law early next week.
$8000 tax credit highlights include:
- The $8000 tax credit is available only to first-time home buyers, no purchase in last 3 years.
- The $8000 tax credit is available only when the first-time home buyers buy a primary residence
- The $8000 tax credit is available only to first-time home buyers buying a primary residence between January 1, 2009 and December 1, 2009
- The $8000 tax credit does not require repayment after 3 years.
- The $8000 tax credit is claimed on a tax return and reduces the tax liability. If the credit is more than the tax liability, the unused credit will be issued as a check to the person claiming the credit
- If you sell the home within 3 years, the entire $8000 tax credit is recaptured
- Income limits of $75,000 for one and $150,000 for a couple.
For those of you who have been asking questions about the possible tax credit – the good news is that we now know what has been passed into law.
What this legislation should do is encourage first time home-buyers to buy a condo or home. What it will probably not do is encourage everyone who isn’t a first time home-buyer to buy a home.
And it remains to be seen exactly how much it will help the overall real estate market turn around.”