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Housing tax credit added to stimulus
Price reduced on a home in Miami
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TEXT OF STORY
Renita Jablonski: The Obama administration is still hoping to get people to work with programs included in the massive stimulus package. And the Senate is still adding to the plan. It's totaling something like $920 billion right now. Last night, Senate Republicans passed an amendment for a tax break on home purchases. Marketplace's Dan Grech has more.
Dan Grech: If you're thinking about buying a house as your primary residence, how about this for a sweetener: A tax credit of up to $15,000. The Senate passed that amendment by unanimous voice vote last night. It would replace the current subsidy, which is $7,500 and only for first-time homebuyers.
James Angel is a finance professor at Georgetown. He says the tax perk is aimed at folks in the middle class who are on the knife's edge of being able to afford the down payment on a mortgage.
James Angel: By putting this $15,000 subsidy onto every home purchase, you're going to stimulate home sales. And this pickup in activity may help the market turn around.
If approved, the new tax break would expire in one year. It would cost $19 billion. That would balloon the total stimulus to $920 billion.
Angel: This will help the people who want to buy or sell a house this year and the realtors. The rest of us are going to pay for it.
A Senate vote on the stimulus package could come as early as tonight.
I'm Dan Grech for Marketplace.
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I personally am tired of bailing out and handing over to those who cant get it together. I purchased my home (as a single mother) in Aug 07, I did it, why cant you. I didnt have a hand out, why should you. I made it through the "ecconomic downfall", why cant you? If you cant save up for a down payment, why would you think you could make a morgage payment? Why should my taxes and that of my childrens pave your way? Do it yourself and maybe in 5 years we wont have to bail you out again! People come-on.
I bought a home in oct. 2008 and have to repay the money also "tax Credit." I think this is unfair and unjust and should be amended. So what makes the 2009 buyers get this reward and those who really stepped up and bought the home in the worst times? Also this bail out stuff chaps my hide!! So we helped those who made things bad and then took care of them when are the ones who did it? What about the small shops all around who did it right and got closed where are there checks? So we got charged to much interest and was ripped off and now we reward them. Lets just offer the steel toe boots to the guys and tell them kick the jewls again the dress shoes only hurt a little bit.
I also have the same question as above (from Bill) that no one has yet addressed. "Everything I have heard about the revisions to the home buyer tax credit will only apply to buyers begining Jan 1 2009. I purchased a home under the previous first time home buyer tax 'loan' in Nov. of 2008. Will the payback of that credit be revised? Or will those like me, who were able to purchase a first home between July 1, 2008 and Dec. 31st 2008 be stuck repaying a credit that other new home owners will not"
I just don't see the point in getting to worried about the details until Obama actually signs it. Who knows what it will look like by the time it hits his desk.
Some clarity is needed for sure. I will qualify for ~2000 of and pass on the 7500 loan option.
But I'd like to know the *final* details of the 15k option.
I am planning to buy my first home or a condo, and I hope this housing tax credit will pass on Tuesday, but my question is if this tax credit will be a help for first time buyers it is not a better idea to have the money before the purchase and no after. I am bearly reaching 9000 thousand, and I need at least 15000
FILE NOW IF YOU QUALIFY FOR THE OLD CREDIT
IF YOU QUALIFY FOR THE OLD TAX CREDIT YOU MUST FILE NOW, BEFORE OBAMA SIGNS NEW LAW!!!
Isakson's press release reads: "The amendment would sunset the current $7,500 housing tax credit on the date of enactment." What does the term "sunset" mean there? In this context, the term "sunset" means that the $7,500 new home buyer tax credit would be supplanted by the proposed $15,000 credit, which applies to all home purchases--not just new homes. "If you are operating under the $7,500 [credit], that's the one you [have]," says Joan Kirchner, Sen. Isakson's Deputy Chief of Staff. "Then, from the date of enactment forward, the new one takes over and nobody else gets the old $7,500 [credit]."
That last sentence makes it official as far as I read it.
FILE NOW IF YOU QUALIFY, OR YOU'LL BE SORRY!
See #2 below
http://www.usnews.com/blogs/the-home-front/2009/02/06/the-15000-home-buy...
For Anna,
Well then, if the NEW $15,000 tax credit is cash in hand with no repayment then that is GREAT! Can you ask the senator if it is backdated to August, 2008? If not then I only qualify for a $7,500 LOAN, which I will pass on.
link again for $7,500 "Credit" loan for those who want to know about the original credit from last summer.
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