Senate OKs $15,000 tax break for homebuyers – I believe investors too eligible for this tax credit

[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.

[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.

[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.

[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.

[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.

[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.

[SDEngineer]

[quote=eagleeye][
Although, I haven’t found the text of the bill, from what I have read it says this tax credit can be claimed on 2008 tax returns. If that is the case how can it only apply to 2009 purchases? I read it to encompass the same start date as the 1st-time $7500 tax break which this bill will now supercede. Does anyone have any more specific info?

[/quote]

It does contain the provision that any home purchased which qualifies under the plan can be considered to have been purchased on 12/31/2008 for purposes of claiming the credit (12/31/2008 is considered the “start date” for the new credit).

This is no different from the previous $7500 repayable credit, which also allowed you to claim it for 2008 even if you bought the property in the 2009 year (though, of course, should this bill pass, anyone who bought in 2009 would be eligible for the 15K version, so it’s a moot point now).

Essentially, they’re allowing anyone who buys a home at any point during this year to claim the refund pretty much immediately. If you buy the home towards the end of the year, you could claim it on next years taxes, or file an amendment to this years taxes to claim it immediately. I would guess the only reason to wait til the next year would be if one is allergic to paperwork (though, knowing the IRS, that’s probably understandable).

[SDEngineer]

[quote=eagleeye][
Although, I haven’t found the text of the bill, from what I have read it says this tax credit can be claimed on 2008 tax returns. If that is the case how can it only apply to 2009 purchases? I read it to encompass the same start date as the 1st-time $7500 tax break which this bill will now supercede. Does anyone have any more specific info?

[/quote]

It does contain the provision that any home purchased which qualifies under the plan can be considered to have been purchased on 12/31/2008 for purposes of claiming the credit (12/31/2008 is considered the “start date” for the new credit).

This is no different from the previous $7500 repayable credit, which also allowed you to claim it for 2008 even if you bought the property in the 2009 year (though, of course, should this bill pass, anyone who bought in 2009 would be eligible for the 15K version, so it’s a moot point now).

Essentially, they’re allowing anyone who buys a home at any point during this year to claim the refund pretty much immediately. If you buy the home towards the end of the year, you could claim it on next years taxes, or file an amendment to this years taxes to claim it immediately. I would guess the only reason to wait til the next year would be if one is allergic to paperwork (though, knowing the IRS, that’s probably understandable).

[SDEngineer]

[quote=eagleeye][
Although, I haven’t found the text of the bill, from what I have read it says this tax credit can be claimed on 2008 tax returns. If that is the case how can it only apply to 2009 purchases? I read it to encompass the same start date as the 1st-time $7500 tax break which this bill will now supercede. Does anyone have any more specific info?

[/quote]

It does contain the provision that any home purchased which qualifies under the plan can be considered to have been purchased on 12/31/2008 for purposes of claiming the credit (12/31/2008 is considered the “start date” for the new credit).

This is no different from the previous $7500 repayable credit, which also allowed you to claim it for 2008 even if you bought the property in the 2009 year (though, of course, should this bill pass, anyone who bought in 2009 would be eligible for the 15K version, so it’s a moot point now).

Essentially, they’re allowing anyone who buys a home at any point during this year to claim the refund pretty much immediately. If you buy the home towards the end of the year, you could claim it on next years taxes, or file an amendment to this years taxes to claim it immediately. I would guess the only reason to wait til the next year would be if one is allergic to paperwork (though, knowing the IRS, that’s probably understandable).

[SDEngineer]

[quote=eagleeye][
Although, I haven’t found the text of the bill, from what I have read it says this tax credit can be claimed on 2008 tax returns. If that is the case how can it only apply to 2009 purchases? I read it to encompass the same start date as the 1st-time $7500 tax break which this bill will now supercede. Does anyone have any more specific info?

[/quote]

It does contain the provision that any home purchased which qualifies under the plan can be considered to have been purchased on 12/31/2008 for purposes of claiming the credit (12/31/2008 is considered the “start date” for the new credit).

This is no different from the previous $7500 repayable credit, which also allowed you to claim it for 2008 even if you bought the property in the 2009 year (though, of course, should this bill pass, anyone who bought in 2009 would be eligible for the 15K version, so it’s a moot point now).

Essentially, they’re allowing anyone who buys a home at any point during this year to claim the refund pretty much immediately. If you buy the home towards the end of the year, you could claim it on next years taxes, or file an amendment to this years taxes to claim it immediately. I would guess the only reason to wait til the next year would be if one is allergic to paperwork (though, knowing the IRS, that’s probably understandable).

[SDEngineer]

[quote=eagleeye][
Although, I haven’t found the text of the bill, from what I have read it says this tax credit can be claimed on 2008 tax returns. If that is the case how can it only apply to 2009 purchases? I read it to encompass the same start date as the 1st-time $7500 tax break which this bill will now supercede. Does anyone have any more specific info?

[/quote]

It does contain the provision that any home purchased which qualifies under the plan can be considered to have been purchased on 12/31/2008 for purposes of claiming the credit (12/31/2008 is considered the “start date” for the new credit).

This is no different from the previous $7500 repayable credit, which also allowed you to claim it for 2008 even if you bought the property in the 2009 year (though, of course, should this bill pass, anyone who bought in 2009 would be eligible for the 15K version, so it’s a moot point now).

Essentially, they’re allowing anyone who buys a home at any point during this year to claim the refund pretty much immediately. If you buy the home towards the end of the year, you could claim it on next years taxes, or file an amendment to this years taxes to claim it immediately. I would guess the only reason to wait til the next year would be if one is allergic to paperwork (though, knowing the IRS, that’s probably understandable).

[SDEngineer]

[quote=PKMAN]Am I eligible as first-time homebuyer?

I sold my home in May of 2004 and have been overseas ever since. Now I’m coming back and will be buying a home with estimated escrow date of mid/late March. This makes me a non-homeowner for nearly 5 years. I wonder if thus I can be considered a first-time buyer?[/quote]

Yes. The test is 3 years of non-home ownership.

However, the amendments added recently remove the “first time buyer” provisions, so it applies to all home purchases.

[SDEngineer]

[quote=PKMAN]Am I eligible as first-time homebuyer?

I sold my home in May of 2004 and have been overseas ever since. Now I’m coming back and will be buying a home with estimated escrow date of mid/late March. This makes me a non-homeowner for nearly 5 years. I wonder if thus I can be considered a first-time buyer?[/quote]

Yes. The test is 3 years of non-home ownership.

However, the amendments added recently remove the “first time buyer” provisions, so it applies to all home purchases.

[SDEngineer]

[quote=PKMAN]Am I eligible as first-time homebuyer?

I sold my home in May of 2004 and have been overseas ever since. Now I’m coming back and will be buying a home with estimated escrow date of mid/late March. This makes me a non-homeowner for nearly 5 years. I wonder if thus I can be considered a first-time buyer?[/quote]

Yes. The test is 3 years of non-home ownership.

However, the amendments added recently remove the “first time buyer” provisions, so it applies to all home purchases.

[SDEngineer]

[quote=PKMAN]Am I eligible as first-time homebuyer?

I sold my home in May of 2004 and have been overseas ever since. Now I’m coming back and will be buying a home with estimated escrow date of mid/late March. This makes me a non-homeowner for nearly 5 years. I wonder if thus I can be considered a first-time buyer?[/quote]

Yes. The test is 3 years of non-home ownership.

However, the amendments added recently remove the “first time buyer” provisions, so it applies to all home purchases.

[Author]

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