Homebuyers Tax credit - Any Accountants there? [Archive]

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tpop1

11-05-2009, 04:08 PM

I just heard on CNBC and confirmed on the internet the the House & Senate have passed a bill extending the $8000 first time home buyer tax credit until April of 2010,�. PLUS added a $6500 credit for most other home buyers (some income & home price exceptions). Sounds like the $6500 credit is retroactive back to the point of the original bill.

Pres. Is poised to sign it!

Any accountants out there who might be able to clarify the rules and the back date for the $6500 credit?

All of us who were complaining that our 2009 purchases were excluded as non-first time buyers, are extremely interested.

JohnN

11-05-2009, 04:19 PM

Bad news for you and I both the way I see it.

But I admit I haven't seen enough info yet to determine a "backdate", I don't think there is one.

1) The tax credit is really a postponement in the first place. For the $8,000 in existence, yes you get it this year, but must repay it at $1,600/year over the next five years, so it's really a tax postponement, an interest-free loan.
That much I do know

2) The new law reads to me that only newly created home purchase contracts are eligible. I don't see anything about backdating???

http://news.yahoo.com/s/ap/us_homebuyers_tax_credit

part of the text reads-

First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the House voted 403-12 Thursday to extend and expand the tax credit to include many buyers who already own homes. The Senate approved the measure Wednesday, and the White House said President Barack Obama would sign it Friday.
Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers � or anyone who hasn't owned a home in the last three years � would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.

Bob S

11-05-2009, 04:23 PM

JohnN,
I think that you are mistaken about paying back the $8000 tax credit. No repayment is necessary. The prior year had a $7500 tax credit that did have to be paid back. It was really an interest free loan.

Russ_Boston

11-05-2009, 04:28 PM

That is correct Bob.

The previous year was a loan - this year it is pure credit. My son and daughter in law took advantage of it a few months ago.

tpop1

11-05-2009, 04:29 PM

First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the House voted 403-12 Thursday to extend and expand the tax credit to include many buyers who already own homes..

Hi John,

sounds like we are reading the same info.....only I am focusing on the operative words in red and hopefully intrepreting them to possibly include back dating to january...with January and extended being the key words????

I'm sure we will hear more soon....

Thanks,

Len

TomW

11-06-2009, 01:39 PM

The tax credit should just barely beat the TV home price increase into effect.

Russ_Boston

11-06-2009, 01:45 PM

Have you guys seen the TV new home web page? Prices aren't going anywhere. They may be increasing the base price for the model but that's assuming that you buy the lot, buy the model etc. etc. There are currently 94 listings at 200K or more that are reduced (some by almost 20%) from these base prices. So I wouldn't worry too much about a rush to buy.

http://www.thevillages.com/homes/search.asp

BobKat1

11-06-2009, 02:17 PM