Extending the First Time Home-Buyer Tax credit? Fingers Crossed
Posted 09-03-2009 at 08:49 PM by GregTraub
Let’s hope! For those of you sitting under a rock the past year, if you haven’t owned a home in the last 3 years you are eligible to receive $8,000 from Uncle Sam if you buy a home before November 30th 2009.
Thus far this program has actually be one of the most successful stimulus programs out there….more stimulative than cash for clunkers in my opinion even if it hasn’t received as much press. If you’ve been working with me over the past 6 months as a buyer you would have noticed this too. Anything under 200K right now is selling like hot cakes (what is a hotcake anyway?). I’ve had several of my clients outbid multiple times on multiple properties…some bidding tens of thousands OVER asking! And the news is even starting to pick up on the increased sales volume and in some area’s we’ve seen a slight uptick in prices.
But enough about the OLD. That credit is expiring in a couple months, so unless you start NOW, and don’t look at short sales, you likely aren’t going to close in time to get the credit (but we can still try…I didn’t schedule a vacation in the next few months just for the last minuter’s out there).
THE NEW news is that there are currently 5 bills sponsored in congress (maybe more by the time I write this) all dealing with Extending or Expanding the credit to further boost the housing market.
Direct from the Congress:
Senate Bill S1230 - the Home Buyer Tax Credit Act of 2009 – Home Buyer Tax Credit Act of 2009 - Amends the Internal Revenue Code to replace the current tax credit for first-time homebuyers with a one-time credit for 10% of the purchase price of a principal residence, up to $15,000. Requires repayment of credit amounts if the taxpayer sells or fails to occupy the residence within 24 months after the date of purchase.
House Bill HR 2619 Amends the Internal Revenue Code to allow until June 30, 2010: (1) a first-time homebuyer tax credit for all purchasers of a principal residence (not just first-time homebuyers); and (2) a refundable tax credit, up to $3,000, for the costs of refinancing a principal residence.
HR 2606 - the Home Buying Credit Expansion Act Home Buying Credit Expansion Act - Amends the Internal Revenue Code to: (1) extend the first-time homebuyer tax credit to all individuals who purchase a principal residence (currently, only first-time homebuyers as so defined); (2) extend such credit and the waiver of recapture requirements for such credit through 2010; and (3) expand the election to treat a purchase of a principal residence as made in a prior taxable year for purposes of such credit.
HR 2801 - the Home Ownership Move the Economy (HOME) Home Ownership Moves the Economy (HOME) Act of 2009 - Amends the Internal Revenue Code to: (1) extend the first-time homebuyer tax credit to all individuals who purchase a principal residence (currently, only first-time homebuyers as so defined); (2) extend such credit and the waiver of recapture requirements for such credit through 2010; and (3) repeal the limitation on such credit based on modified adjusted gross income.
Finally, HR 2655 Amends the Internal Revenue Code to: (1) extend the first-time homebuyer tax credit to all individuals who purchase a principal residence (currently, only first-time homebuyers as so defined); (2) extend such credit and the waiver of recapture requirements for such credit through 2010; and (3) expand the election to treat a purchase of a principal residence as made in a prior taxable year for purposes of such credit.
As of Right now, NONE of these have gone further than being introduced by a congressman, so all of them have an equal chance of being passed or outright rejected. My gut says something will be passed before the current credit expires….definitely something that at least keeps the current credit in place as-is, but I doubt they will up the credit to $15,000.
To tell the Truth, I think HOME act of 2009 is going to be a winner for one reason and one reason only…it’s catchy, like cash for clunkers. Face it, you know no one will remember to ask their congressman to pass HR-261849lglb27, but they can remember the HOME bill. In any event, be sure to contact your congressman!!! And ask them to support your favorite one (I like s1230 because it’ll stimulate my wallet the most…but I’m biased) either way something needs to be passed. Housing led the economy down, it will likely have to lead the economy up too.
To find your local elected official Congress.org - Elected Officials Don’t be shy calling and writing them. They are there to serve YOU.
Thus far this program has actually be one of the most successful stimulus programs out there….more stimulative than cash for clunkers in my opinion even if it hasn’t received as much press. If you’ve been working with me over the past 6 months as a buyer you would have noticed this too. Anything under 200K right now is selling like hot cakes (what is a hotcake anyway?). I’ve had several of my clients outbid multiple times on multiple properties…some bidding tens of thousands OVER asking! And the news is even starting to pick up on the increased sales volume and in some area’s we’ve seen a slight uptick in prices.
But enough about the OLD. That credit is expiring in a couple months, so unless you start NOW, and don’t look at short sales, you likely aren’t going to close in time to get the credit (but we can still try…I didn’t schedule a vacation in the next few months just for the last minuter’s out there).
THE NEW news is that there are currently 5 bills sponsored in congress (maybe more by the time I write this) all dealing with Extending or Expanding the credit to further boost the housing market.
Direct from the Congress:
Senate Bill S1230 - the Home Buyer Tax Credit Act of 2009 – Home Buyer Tax Credit Act of 2009 - Amends the Internal Revenue Code to replace the current tax credit for first-time homebuyers with a one-time credit for 10% of the purchase price of a principal residence, up to $15,000. Requires repayment of credit amounts if the taxpayer sells or fails to occupy the residence within 24 months after the date of purchase.
House Bill HR 2619 Amends the Internal Revenue Code to allow until June 30, 2010: (1) a first-time homebuyer tax credit for all purchasers of a principal residence (not just first-time homebuyers); and (2) a refundable tax credit, up to $3,000, for the costs of refinancing a principal residence.
HR 2606 - the Home Buying Credit Expansion Act Home Buying Credit Expansion Act - Amends the Internal Revenue Code to: (1) extend the first-time homebuyer tax credit to all individuals who purchase a principal residence (currently, only first-time homebuyers as so defined); (2) extend such credit and the waiver of recapture requirements for such credit through 2010; and (3) expand the election to treat a purchase of a principal residence as made in a prior taxable year for purposes of such credit.
HR 2801 - the Home Ownership Move the Economy (HOME) Home Ownership Moves the Economy (HOME) Act of 2009 - Amends the Internal Revenue Code to: (1) extend the first-time homebuyer tax credit to all individuals who purchase a principal residence (currently, only first-time homebuyers as so defined); (2) extend such credit and the waiver of recapture requirements for such credit through 2010; and (3) repeal the limitation on such credit based on modified adjusted gross income.
Finally, HR 2655 Amends the Internal Revenue Code to: (1) extend the first-time homebuyer tax credit to all individuals who purchase a principal residence (currently, only first-time homebuyers as so defined); (2) extend such credit and the waiver of recapture requirements for such credit through 2010; and (3) expand the election to treat a purchase of a principal residence as made in a prior taxable year for purposes of such credit.
As of Right now, NONE of these have gone further than being introduced by a congressman, so all of them have an equal chance of being passed or outright rejected. My gut says something will be passed before the current credit expires….definitely something that at least keeps the current credit in place as-is, but I doubt they will up the credit to $15,000.
To tell the Truth, I think HOME act of 2009 is going to be a winner for one reason and one reason only…it’s catchy, like cash for clunkers. Face it, you know no one will remember to ask their congressman to pass HR-261849lglb27, but they can remember the HOME bill. In any event, be sure to contact your congressman!!! And ask them to support your favorite one (I like s1230 because it’ll stimulate my wallet the most…but I’m biased) either way something needs to be passed. Housing led the economy down, it will likely have to lead the economy up too.To find your local elected official Congress.org - Elected Officials Don’t be shy calling and writing them. They are there to serve YOU.
Total Comments 2
Comments
-
I owned a house less than 3 yrs, but was locate out of state (Puerto Rico). Does that count? Can I be able to claim the credit?Posted 09-12-2009 at 07:40 PM by Bear033
-
Your best bet is to consult a tax professional. I am unsure if the ownership of a property outside of the 50 states would disqualify you. The rule does state that if the property you own was not a primary residence, but a second or vacation home, you may still qualify.Posted 09-16-2009 at 08:14 PM by GregTraub
