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

[SDEngineer]

[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.

[CA renter]

Basically, all this means is that those who want to buy a home at market price — without gimmicky mortgages, artificially suppressed interest rates, or “credits” for deadbeats who will just use them to drive up prices again — will have to wait another year or two before they buy.

Any other brilliant ideas from D.C. to make this downturn last far longer than it needs to?

[CA renter]

Basically, all this means is that those who want to buy a home at market price — without gimmicky mortgages, artificially suppressed interest rates, or “credits” for deadbeats who will just use them to drive up prices again — will have to wait another year or two before they buy.

Any other brilliant ideas from D.C. to make this downturn last far longer than it needs to?

[CA renter]

Basically, all this means is that those who want to buy a home at market price — without gimmicky mortgages, artificially suppressed interest rates, or “credits” for deadbeats who will just use them to drive up prices again — will have to wait another year or two before they buy.

Any other brilliant ideas from D.C. to make this downturn last far longer than it needs to?

[CA renter]

Basically, all this means is that those who want to buy a home at market price — without gimmicky mortgages, artificially suppressed interest rates, or “credits” for deadbeats who will just use them to drive up prices again — will have to wait another year or two before they buy.

Any other brilliant ideas from D.C. to make this downturn last far longer than it needs to?

[CA renter]

Basically, all this means is that those who want to buy a home at market price — without gimmicky mortgages, artificially suppressed interest rates, or “credits” for deadbeats who will just use them to drive up prices again — will have to wait another year or two before they buy.

Any other brilliant ideas from D.C. to make this downturn last far longer than it needs to?

[Nor-LA-SD-guy]

Should have waited a few more months TG.

[Nor-LA-SD-guy]

Should have waited a few more months TG.

[Nor-LA-SD-guy]

Should have waited a few more months TG.

[Nor-LA-SD-guy]

Should have waited a few more months TG.

[Nor-LA-SD-guy]

Should have waited a few more months TG.

[Anonymous]

For those of you who would like to read it yourselves, here is the link to the Library of Congress website and the actual text of the “Fix Housing First Homebuyer Tax Credit Act.”

http://thomas.loc.gov/cgi-bin/query/z?c111:S.253:

As I read it last night, this new credit applies to all home buyers, not only 1st time home buyers and would apply to all homes purchases after 12-31-08. It looks to me that in Section 2(f) the income limitations have been increased from $75k single/$150k joint to $125k/$250k respectively. If you keep reading on to section 2(g) you will notice a very interesting development. Looks like the home buyer will not need to wait until they file their taxes to get the credit. The bill proposes that a mechanism be set-up that would allow the credit to be used as part of the down payment, taxes, interest or insurance for the purchase. So I guess it would be deposited in the escrow account somehow. That’s how I read it anyway. Curious to hear what others think.

[Anonymous]

For those of you who would like to read it yourselves, here is the link to the Library of Congress website and the actual text of the “Fix Housing First Homebuyer Tax Credit Act.”

http://thomas.loc.gov/cgi-bin/query/z?c111:S.253:

As I read it last night, this new credit applies to all home buyers, not only 1st time home buyers and would apply to all homes purchases after 12-31-08. It looks to me that in Section 2(f) the income limitations have been increased from $75k single/$150k joint to $125k/$250k respectively. If you keep reading on to section 2(g) you will notice a very interesting development. Looks like the home buyer will not need to wait until they file their taxes to get the credit. The bill proposes that a mechanism be set-up that would allow the credit to be used as part of the down payment, taxes, interest or insurance for the purchase. So I guess it would be deposited in the escrow account somehow. That’s how I read it anyway. Curious to hear what others think.

[Anonymous]

For those of you who would like to read it yourselves, here is the link to the Library of Congress website and the actual text of the “Fix Housing First Homebuyer Tax Credit Act.”

http://thomas.loc.gov/cgi-bin/query/z?c111:S.253:

As I read it last night, this new credit applies to all home buyers, not only 1st time home buyers and would apply to all homes purchases after 12-31-08. It looks to me that in Section 2(f) the income limitations have been increased from $75k single/$150k joint to $125k/$250k respectively. If you keep reading on to section 2(g) you will notice a very interesting development. Looks like the home buyer will not need to wait until they file their taxes to get the credit. The bill proposes that a mechanism be set-up that would allow the credit to be used as part of the down payment, taxes, interest or insurance for the purchase. So I guess it would be deposited in the escrow account somehow. That’s how I read it anyway. Curious to hear what others think.

[Anonymous]

For those of you who would like to read it yourselves, here is the link to the Library of Congress website and the actual text of the “Fix Housing First Homebuyer Tax Credit Act.”

http://thomas.loc.gov/cgi-bin/query/z?c111:S.253:

As I read it last night, this new credit applies to all home buyers, not only 1st time home buyers and would apply to all homes purchases after 12-31-08. It looks to me that in Section 2(f) the income limitations have been increased from $75k single/$150k joint to $125k/$250k respectively. If you keep reading on to section 2(g) you will notice a very interesting development. Looks like the home buyer will not need to wait until they file their taxes to get the credit. The bill proposes that a mechanism be set-up that would allow the credit to be used as part of the down payment, taxes, interest or insurance for the purchase. So I guess it would be deposited in the escrow account somehow. That’s how I read it anyway. Curious to hear what others think.

[Author]

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