[quote=esmith][quote=SDEngineer][quote=temeculaguy]What is the income ceiling? The current $7,500 credit phases out at 75k for singles and 150k for couples. If it follows the same formula it will help most of the country but so cal will get the shaft again.[/quote]
Currently, the phase-outs remain the same. To the best of my knowledge, there are no bills proposing to lift those limits as well, so if I were a betting man, I’d bet they would remain as currently written.[/quote]
Why do you think that the phase-outs remain the same? There’s nothing about income ceiling in the text of the amendment.[/quote]
Because the bills all currently modify the existing program. I’ve read the text of the bills as presented, and none present a new program – they just modify the previously existing program. None of the bills that I’ve read (Inouye’s, Isakson’s, and Thune’s) do anything to modify the phase-out provisions in the existing program – they just change the dates, the repayment provision, and in Isakson’s and Thune’s, the amount and the scope (to allow all principal residence purchasers).
Here’s the text of the relevent portion of Inouye’s bill (which Isakson’s modified further, and Thune’s is similar, just adding a 5% downpayment requirement):
SEC. 1006. EXTENSION OF FIRST-TIME HOMEBUYER CREDIT; WAIVER OF REQUIREMENT TO REPAY.
(a) Extension.–
(1) IN GENERAL.–Section 36(h) is amended by striking “July 1, 2009” and inserting “September 1, 2009”.
(2) CONFORMING AMENDMENT.–Section 36(g) is amended by striking “July 1, 2009” and inserting “September 1, 2009”.
(b) Waiver of Recapture.–
(1) IN GENERAL.–Paragraph (4) of section 36(f) is amended by adding at the end the following new subparagraph:
“(D) WAIVER OF RECAPTURE FOR PURCHASES IN 2009.–In the case of any credit allowed with respect to the purchase of a principal residence after December 31, 2008, and before September 1, 2009–
“(i) paragraph (1) shall not apply, and
“(ii) paragraph (2) shall apply only if the disposition or cessation described in paragraph (2) with respect to such residence occurs during the 36-month period beginning on the date of the purchase of such residence by the taxpayer.”.
(2) CONFORMING AMENDMENT.–Subsection (g) of section 36 is amended by striking “subsection (c)” and inserting “subsections (c) and (f)(4)(D)”.
(c) Effective Date.–The amendments made by this section shall apply to residences purchased after December 31, 2008.
