Bailout bill tax credit provision has some fine print.

[scott]

Here’s the fine print that knocked me out of the running for the free loan:
(g) Application of Section- This section shall only apply to a principal residence purchased by the taxpayer on or after April 9, 2008, and before April 1, 2009.’.
Any ideas how they came up with these dates?

[EconProf]

This provision, and several others that Piggs are calling attention to, have the effect of limiting the real applicability of the “bailout”, and thus lowering its immediate cost to the government. These provisions also show little real good will accrue to the FBs. Several observations:
1. Us critics have had the salutory effect of watering down the impact of the bill until it is practically toothless.
2. Home prices will continue their downward correction.
3. Politicos, and the vast army of supporters of the bailout, will be able to claim they did their best to help FBs.
Notice how each provision of the bill is amenable to sound bites and slogans. Yet, as the Piggs have pointed out, they are so loaded with exceptions, long run costs, and limitations that the impact of the bill will be nil.
4. Since little of substance has happened to arrest the fall of real estate, the GSEs, now formally backed by taxpayers, will cost us dearly over time.

[EconProf]

This provision, and several others that Piggs are calling attention to, have the effect of limiting the real applicability of the “bailout”, and thus lowering its immediate cost to the government. These provisions also show little real good will accrue to the FBs. Several observations:
1. Us critics have had the salutory effect of watering down the impact of the bill until it is practically toothless.
2. Home prices will continue their downward correction.
3. Politicos, and the vast army of supporters of the bailout, will be able to claim they did their best to help FBs.
Notice how each provision of the bill is amenable to sound bites and slogans. Yet, as the Piggs have pointed out, they are so loaded with exceptions, long run costs, and limitations that the impact of the bill will be nil.
4. Since little of substance has happened to arrest the fall of real estate, the GSEs, now formally backed by taxpayers, will cost us dearly over time.

[EconProf]

This provision, and several others that Piggs are calling attention to, have the effect of limiting the real applicability of the “bailout”, and thus lowering its immediate cost to the government. These provisions also show little real good will accrue to the FBs. Several observations:
1. Us critics have had the salutory effect of watering down the impact of the bill until it is practically toothless.
2. Home prices will continue their downward correction.
3. Politicos, and the vast army of supporters of the bailout, will be able to claim they did their best to help FBs.
Notice how each provision of the bill is amenable to sound bites and slogans. Yet, as the Piggs have pointed out, they are so loaded with exceptions, long run costs, and limitations that the impact of the bill will be nil.
4. Since little of substance has happened to arrest the fall of real estate, the GSEs, now formally backed by taxpayers, will cost us dearly over time.

[EconProf]

This provision, and several others that Piggs are calling attention to, have the effect of limiting the real applicability of the “bailout”, and thus lowering its immediate cost to the government. These provisions also show little real good will accrue to the FBs. Several observations:
1. Us critics have had the salutory effect of watering down the impact of the bill until it is practically toothless.
2. Home prices will continue their downward correction.
3. Politicos, and the vast army of supporters of the bailout, will be able to claim they did their best to help FBs.
Notice how each provision of the bill is amenable to sound bites and slogans. Yet, as the Piggs have pointed out, they are so loaded with exceptions, long run costs, and limitations that the impact of the bill will be nil.
4. Since little of substance has happened to arrest the fall of real estate, the GSEs, now formally backed by taxpayers, will cost us dearly over time.

[EconProf]

This provision, and several others that Piggs are calling attention to, have the effect of limiting the real applicability of the “bailout”, and thus lowering its immediate cost to the government. These provisions also show little real good will accrue to the FBs. Several observations:
1. Us critics have had the salutory effect of watering down the impact of the bill until it is practically toothless.
2. Home prices will continue their downward correction.
3. Politicos, and the vast army of supporters of the bailout, will be able to claim they did their best to help FBs.
Notice how each provision of the bill is amenable to sound bites and slogans. Yet, as the Piggs have pointed out, they are so loaded with exceptions, long run costs, and limitations that the impact of the bill will be nil.
4. Since little of substance has happened to arrest the fall of real estate, the GSEs, now formally backed by taxpayers, will cost us dearly over time.

[feraina]

[quote=temeculaguy]They wont have to, it is a simple programming issue, just like those of you who got a stimulus check, that will be deducted from your refund next year. More fine print, there was no free money, it was an interest free loan.[/quote]

I feel foolish, but I’ve never heard this before about the stimulus check! (Not that we’ve spent the check, but I’d be bummed if it’s not “real” money.)

This Wikipedia article claims that it doesn’t need to be repaid in future taxes:
http://en.wikipedia.org/wiki/Economic_Stimulus_Act_of_2008
according to reference 8, which is the IRS website, but when I go to that website, I don’t see anything about repayment or not.

[feraina]

[quote=temeculaguy]They wont have to, it is a simple programming issue, just like those of you who got a stimulus check, that will be deducted from your refund next year. More fine print, there was no free money, it was an interest free loan.[/quote]

I feel foolish, but I’ve never heard this before about the stimulus check! (Not that we’ve spent the check, but I’d be bummed if it’s not “real” money.)

This Wikipedia article claims that it doesn’t need to be repaid in future taxes:
http://en.wikipedia.org/wiki/Economic_Stimulus_Act_of_2008
according to reference 8, which is the IRS website, but when I go to that website, I don’t see anything about repayment or not.

[feraina]

[quote=temeculaguy]They wont have to, it is a simple programming issue, just like those of you who got a stimulus check, that will be deducted from your refund next year. More fine print, there was no free money, it was an interest free loan.[/quote]

I feel foolish, but I’ve never heard this before about the stimulus check! (Not that we’ve spent the check, but I’d be bummed if it’s not “real” money.)

This Wikipedia article claims that it doesn’t need to be repaid in future taxes:
http://en.wikipedia.org/wiki/Economic_Stimulus_Act_of_2008
according to reference 8, which is the IRS website, but when I go to that website, I don’t see anything about repayment or not.

[feraina]

[quote=temeculaguy]They wont have to, it is a simple programming issue, just like those of you who got a stimulus check, that will be deducted from your refund next year. More fine print, there was no free money, it was an interest free loan.[/quote]

I feel foolish, but I’ve never heard this before about the stimulus check! (Not that we’ve spent the check, but I’d be bummed if it’s not “real” money.)

This Wikipedia article claims that it doesn’t need to be repaid in future taxes:
http://en.wikipedia.org/wiki/Economic_Stimulus_Act_of_2008
according to reference 8, which is the IRS website, but when I go to that website, I don’t see anything about repayment or not.

[feraina]

[quote=temeculaguy]They wont have to, it is a simple programming issue, just like those of you who got a stimulus check, that will be deducted from your refund next year. More fine print, there was no free money, it was an interest free loan.[/quote]

I feel foolish, but I’ve never heard this before about the stimulus check! (Not that we’ve spent the check, but I’d be bummed if it’s not “real” money.)

This Wikipedia article claims that it doesn’t need to be repaid in future taxes:
http://en.wikipedia.org/wiki/Economic_Stimulus_Act_of_2008
according to reference 8, which is the IRS website, but when I go to that website, I don’t see anything about repayment or not.

[temeculaguy]

feraina- in 2003 they gave out the checks but only for people with kids, then the following year when you did your taxes, the child tax credit (not to be confused with the deduction per dependent) was not available that year as it had been in prior years. When this stimulus was anounced it was written that it would follow the same format. However, numerous media outlets reported that this stimulus will not reduce your refund next year so it may amount to free money. I read a few pages of the bill and it still uses the phrase “Advance refund or advanced credit” leading other analysts to determine the IRS will not give you the normal credit come tax time if you got the advanced credit. I didn’t look much further because it doesn’t pertain to me, I didn’t get one and my income precludes me from getting the credit or the advance credit. If I keep reading I’ll just get more pissed off because the whole concept of an income limit that is not regionally adjusted irritates me.

[temeculaguy]

feraina- in 2003 they gave out the checks but only for people with kids, then the following year when you did your taxes, the child tax credit (not to be confused with the deduction per dependent) was not available that year as it had been in prior years. When this stimulus was anounced it was written that it would follow the same format. However, numerous media outlets reported that this stimulus will not reduce your refund next year so it may amount to free money. I read a few pages of the bill and it still uses the phrase “Advance refund or advanced credit” leading other analysts to determine the IRS will not give you the normal credit come tax time if you got the advanced credit. I didn’t look much further because it doesn’t pertain to me, I didn’t get one and my income precludes me from getting the credit or the advance credit. If I keep reading I’ll just get more pissed off because the whole concept of an income limit that is not regionally adjusted irritates me.

[temeculaguy]

feraina- in 2003 they gave out the checks but only for people with kids, then the following year when you did your taxes, the child tax credit (not to be confused with the deduction per dependent) was not available that year as it had been in prior years. When this stimulus was anounced it was written that it would follow the same format. However, numerous media outlets reported that this stimulus will not reduce your refund next year so it may amount to free money. I read a few pages of the bill and it still uses the phrase “Advance refund or advanced credit” leading other analysts to determine the IRS will not give you the normal credit come tax time if you got the advanced credit. I didn’t look much further because it doesn’t pertain to me, I didn’t get one and my income precludes me from getting the credit or the advance credit. If I keep reading I’ll just get more pissed off because the whole concept of an income limit that is not regionally adjusted irritates me.

[temeculaguy]

feraina- in 2003 they gave out the checks but only for people with kids, then the following year when you did your taxes, the child tax credit (not to be confused with the deduction per dependent) was not available that year as it had been in prior years. When this stimulus was anounced it was written that it would follow the same format. However, numerous media outlets reported that this stimulus will not reduce your refund next year so it may amount to free money. I read a few pages of the bill and it still uses the phrase “Advance refund or advanced credit” leading other analysts to determine the IRS will not give you the normal credit come tax time if you got the advanced credit. I didn’t look much further because it doesn’t pertain to me, I didn’t get one and my income precludes me from getting the credit or the advance credit. If I keep reading I’ll just get more pissed off because the whole concept of an income limit that is not regionally adjusted irritates me.

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