It seems everyone who hoped for a $15,000 tax credit to buy a new home as primary residence will be disappointed. As Los Angeles Times reported that the proposal $35 billion credit to support mortgage sales was jettisoned in favor of a more modest $2 billion to $3 billion provision. The proposal would eliminate the repayment requirement in an existing tax credit for first-time home buyers, and raise the credit to $8,000 (not $15,000 tax credit as promised) from $7,500.
Is that good news or bad news? Whatever the President Obama will sign the proposal for stimulus bill package into law is which available $8,000 tax credit or $15,000 tax credit, more important for you as new homebuyers is how to: (1) tax advantage of the forthcoming homebuyer tax credit, (2) get a great rate on a mortgage, and (3) find a good property at a good price.
Let see what the advantage of homebuyer tax credit that consider on the proposal. The $8,000 tax credit is available only to first-time home buyers who buy a primary residence for this year, 2009. This tax credit does not require repayment and is claimed on a tax return and reduces the tax liability. If the tax liability is less than the tax credit, the unused credit will be issued as a check to the person claiming the credit. If you sell the home within 3 years, the entire $8000 tax credit is recaptured.
Meanwhile, get advice on finding a good deal on a new mortgage is must to do before if you really plan and decide to buy a new home this year while you wait what the government support.
Hi if im in process of buying now. Can I claim the 7500 dollar tax credit for 2008 and pay it back. Then claim the new 8000 dollar credit for 2009 taxes?
March 3rd, 2009 at 8:26 pm