No elected politician in this country, Democrat or Republican, believes that everyone should receive the same pay.

So, JKing, you are a talented writer,I’ll give you that. However, leave the politics to someone else. You will do yourself a favor.

We voted for Obama to get rid of these evil nuisances from our Government. And now we see, we still have some cancerous elements remaining. We shall vote all these bad elements out. We are also taking good notice of those democrats dressed in wolves’ cloths, who are clearly on those egoistic shit-heads’ side. Dear republican clowns, there is time for everyone and you’ll get yours soon. You cannot simply keep making mockery of the citizens that pay your salaries. Keep your hateful and fear-ridden policies to yourself and better start packing to leave. This world will be for all people, not just for the thieves, the selfish rich and for the so-called privileged; it’s for all people get it – all people. We will work hard to make sure America stays, as the best country in the world there is through our hard work, sweat, unity and care for all, not hate and playing the boogie fat man. We promise you one thing, we will vote you out.

Home-buyers and homeowners

First-time home-buyers could qualify for an $8,000 tax credit.

The credit is slightly larger than the $7,500 credit in existing law, but it is substantially less than a proposal in the Senate bill that would have boosted the credit to $15,000 and broadened the eligibility.

In addition, the compromise bill waives a requirement that the tax credit be repaid. The credit applies only to homes bought between Jan. 1 and Aug. 31 of this year.

Homeowners who install new doors, windows or furnaces to make their home more energy efficient would be able to get as much as $1,500 back through new tax breaks.

Anything and everything I have heard about a 4% rate is that it’s only for new loans and not for refinancing.

Homebuyer tax credit: The Senate provides $35.5 billion for a $15,000 tax credit for purchasers of homes bought in the year after the bill takes effect. The House includes $2.6 billion and limits its smaller $7,500 credit to first-time homebuyers for homes purchased from Jan. 1, 2009, to July 1, 2009, and phases out the credit for couples making more than $150,000.

Sounds to me like it takes effect after the stimulus is signed. I’d be surprised if they did anything but. They want to “stimulate”, not give money to people who were going to buy anyway. FYI, I say that begrudingly, we’re closing on a house next week in LA. I’d say it’s a gamble if the 15000 is even an issue anymore, sounds like a lot of the tax cuts are out. I’m moving on and seeing what they come up with for the 4 percent fixed interest rates in the next 6 months.

The added Senate breaks include a $15,000 homebuyer tax credit that has proven more costly than first advertised and could very well be dropped as part of the effort to scale back the package.

I have also heard this from an email I received from Ken Gear at http://www.fixhousingfirst.com today…

“There is a strong push to eliminate or drastically scale back the home buyer tax credit. Several newspapers have editorialized against it and a number of interest groups have voiced their opposition”.

This isnt looking very good at all.

http://www.politico.com/news/stories/0209/18700_Page2.html

What are the payback waiver requirements?
Will the credit be refundable?

Thanks Neil

My fiance and I closed on a house February 4th, 2009. Though we closed, we are not able to take possession of the house until March 2nd as agreed upon in the Buy/Sell(purchase agreement). The definition of purchase by the new legislation refers to an acquisition. Acquisition is not operationally defined buy legally means possession of something concrete. Possession in turn means ownership and occupancy. Since we do not gain occupancy until March 2nd would we still qualify for the new $15,000 home buyer credit if it is passed. Our purchase is not complete until we have been granted occupancy and have concrete possession of the house. We should not be treated any different than the people that we bought the house from whom in turn will close on the 2nd of March and are able to take possession of their home immediately.

One thing I find odd –
“12 (c) SUNSET OF CURRENT FIRST-TIME HOMEBUYER
13 CREDIT.—
14 (1) IN GENERAL.—Subsection (h) of section 36
15 is amended by striking ‘‘July 1, 2009’’ and inserting
16 ‘‘the date of the enactment of the American Recov
17 ery and Reinvestment Tax Act of 2009’’.
18 (2) ELECTION TO TREAT PURCHASE IN PRIOR
19 YEAR.—Subsection (g) of section 36 is amended by
20 striking ‘‘July 1, 2009’’ and inserting ‘‘the date of
21 the enactment of the American Recovery and Rein
22 vestment Tax Act of 2009’’.”

Based on the rest of the text, shouldn’t that read (in both sections):
“striking “July 1, 2009″ and inserting “ONE YEAR FROM the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009″???

If this isn’t corrected, would that make the end date of eligibility the same date as the start date?

In particular, this section:

5. Instead of buying a new home from a home builder, I have hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?

Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after April 9, 2008 and before July 1, 2009.

In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

Now, much of the FAQ may change once this bill is passed, but I would imagine this section (aside from, hopefully, the cutoff date being extended to at least 9/1/09) will remain the same, as it seems to be based on the current tax code.

From what I can tell, if you’ve hired your own contractor, or built the house yourself, then ‘possession’ is not until you move in. If you are buying it from a builder (as I am currently in the process of), then the date of closing would be the purchase date.

On the other hand, this is the text of the amendment that is still listed on senate.gov:

“(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.”

Note the Effective Date listed at the bottom. This is amendment S.350 proposed by Max Baucus on 1/29/09… I’m still having some trouble locating the Republican’s version on Senate.gov which increases the credit to $15,000. Since this was agreed to by voice vote, maybe it’s just not listed under active legislation? I’m not sure, but if anyone can point me in the right direction, it would be appreciated!

So basically, from what I can tell, this can still go either way, and until the House and Senate agree on the bill, and Obama signs it, we’re not really going to know the specifics and who’s eligible for what.

Personally, I’m not sure that opening the credit up to everyone is a great idea (maybe raising it to 15k for first time buyers, and leaving it at 7500 for all others would be a better way to do it…)…

I just got off of the phone with Senator Isakson’s Atlanta office. They told me that the Tax Credit would not take effect until signed into law by the President and would apply to houses closed after that date. He said it would not be retroactive to the beginning of the year in its current form.

My wife and I are planning to build a new home this year. That said, will ‘new home’ construction apply to this tax credit? (as nothing I’ve read so far talks about this) Also, would the home construction have to be completed in 2009 and have us take “ownership” prior to the end of the year for this to take effect? What, in order to take advantage of this credit, would be considered the critial date? The time in which we get our construction loan?…or when our mortgage is approved/setup?…or when we take possession?

Thanks.

The press release,”Senate Unanimously Approves Isakson Amendment to Stimulate Housing Market” while less clear also reiterates the qualifying purchase date as follows:

“WASHINGTON – The U.S. Senate today unanimously approved an amendment by U.S. Senator Johnny Isakson, R-Ga., to stimulate the nation’s declining housing market by offering a $15,000 tax credit to individuals who purchase a home in the next year.”

http://isakson.senate.gov/press/2009/020409housing.htm

They seem to be looking forward and not back. This is consistent with the bill’s language “of enactment date” and 1 year after. No purchases appear to qualify before enactment date from my reading. A critical point for folks who are now in contract to purchase and may be closing in the coming weeks.

The amendment’s current link is:
http://isakson.senate.gov/Amdt_106.pdf

JMB

When it comes to the purchase qualifying date for getting the $15,000 credit. Please note in the amendment line 19 (b) Limitations :

‘‘(3) ALLOCATION OF CREDIT AMOUNT.—At the
13 election of the taxpayer, the amount of the credit
14 allowed under paragraph (1) (after application of
15 paragraph (2)) may be equally divided among the 2
16 taxable years beginning with the taxable year in
17 which the purchase of the principal residence is
18 made.
19 ‘‘(b) LIMITATIONS.—
20 ‘‘(1) DATE OF PURCHASE.—The credit allowed
21 under subsection (a) shall be allowed only with
22 respect to purchases made—
23 ‘‘(A) after the date of the enactment of the
24 American Recovery and Reinvestment Tax Act
25 of 2009, and
1 ‘‘(B) on or before the date that is 1 year
2 after such date of enactment.

see:
http://isakson.senate.gov/Amdt_106.pdf

I think the confusion is in the first paragraph of this amendment–

‘‘(a) ALLOWANCE OF CREDIT.—
3 ‘‘(1) IN GENERAL.—In the case of an individual
4 who is a purchaser of a principal residence during
5 the taxable year, there shall be allowed as a credit
6 against the tax imposed by this chapter an amount
7 equal to 10 percent of the purchase price of the resi-
8 dence.

I think a “,” was omitted in line 4

3 ‘‘(1) IN GENERAL.—In the case of an individual
4 who is a purchaser of a principal residence(,) during
5 the taxable year, there shall be allowed as a credit

My understanding is :

in the case of an individual who is a purchaser of a principal residence (on or after the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009, ), during the taxable year, there shall be allowed as a credit against the tax imposed by this chapter an amount equal to 10 percent of the purchase price of the residence.

JMB

The latest version of the bill is not available on Thomas yet, so we’ll probably just have to wait and see.

To clarify, my stance only applies for those who purchased homes in 2008 (from April 9th 2008 to Dec 31 2008, which is the qualifying dates from the old tax credit.) In my situation, I qualify for the old credit but not the new credit, b/c I closed on my house on May 1st 2008.

If you fit this category, you all best file now, rather than taking the chance that the old credit ceases to exist with the stroke of Obama’s pen. If I am wrong, I’ll file an amended return next month. I filed last week so as not to get screwed, as those in my situation who wait will likely be just that, screwed.

I would be very grateful if you could provide an updated link with the latest text from the amendment you referenced. I do believe I am looking at the latest version, which is the one I posted from Sen. Isakson’s press release from yesterday the 7th.

BTW, the dates you listed are for two days in a row. Dec 31 2008 is followed the next day, Jan 1st 2009

Anna Lee

As we learned during the Enlightenment, Adam Smith’s invisible hand is infinitely more efficient at it. Why must we keep denying that?

Just let us keep more of what we earn and stay the hell out of our lives!

IF YOU QUALIFY FOR THE OLD TAX CREDIT YOU MUST FILE NOW, BEFORE OBAMA SIGNS NEW LAW!!!

Isakson’s press release reads: “The amendment would sunset the current $7,500 housing tax credit on the date of enactment.” What does the term “sunset” mean there? In this context, the term “sunset” means that the $7,500 new home buyer tax credit would be supplanted by the proposed $15,000 credit, which applies to all home purchases–not just new homes. “If you are operating under the $7,500 [credit], that’s the one you [have],” says Joan Kirchner, Sen. Isakson’s Deputy Chief of Staff. “Then, from the date of enactment forward, the new one takes over and nobody else gets the old $7,500 [credit].”

That last sentence makes it official as far as I read it.

FILE NOW IF YOU QUALIFY, OR YOU’LL BE SORRY!

See #2 below

http://www.usnews.com/blogs/the-home-front/2009/02/06/the-15000-home-buying-tax-credit-6-things-to-know.html

We’re first-time buyers, have a signed contract and have our closing planned FOR THIS WEDNESDAY!

I know the Senate passes the 15k deal last week, that both sides seem to agree to it as of Friday, and that President Obama says it’s looking likely to be signed…are things still looking like “any home bought Jan-Dec ’09″?

If it’s anyone’s call until it’s signed into law, when do you think that will happen?
Should we postpone our closing date (we can until Feb 27th) if nothing is signed by…say… Noon Tuesday, just to play it safe?

-Eff