New Stimulus Package

[Charade]

do most people realize the the house tax credit is actually an interest free loan? It must be repaid over 15 years.

You do not get the tax credit when you close on your house. You get the tax credit when you file your federal income taxes for the year 2008 or 2009, depending on when you buy your home. Note: If you buy a house in 2009 after filing your 2008 taxes, you can file an amended 2008 tax return to claim the credit if you choose.

The homebuyer tax credit is a refundable credit that can lower the amount of federal income taxes you owe or even result in a cash payment:

If you qualify for a credit that is less than you owe in taxes, the credit will reduce your tax liability
If you qualify for a credit that is more than you owe in taxes, the government will pay you the difference
If you qualify for a credit and do not owe any federal income tax, the government will pay you the full credit amount
You must file a federal income tax return to get the credit, even if you don't owe any income taxes.

You must start paying back the credit two years after the year you bought the house. You pay back the credit over a 15-year period as an additional tax on your tax return. If you claim a $7500 credit, for example, you must pay back about $500 per year. Note: The tax credit is basically a 15-year interest-free loan from the government.

If you stop living in the house as your primary residence, or if you sell the house before the 15-year repayment period is over, you must pay back the balance of the tax credit in full. In special situations, you do not have to pay back the full amount (for example if you do not make enough profit from the sale of the house to pay back the credit, or if the taxpayer dies).

Worth repeating.

Y'all have been hoodwinked.

 

[Charade]

do most people realize the the house tax credit is actually an interest free loan? It must be repaid over 15 years.

You do not get the tax credit when you close on your house. You get the tax credit when you file your federal income taxes for the year 2008 or 2009, depending on when you buy your home. Note: If you buy a house in 2009 after filing your 2008 taxes, you can file an amended 2008 tax return to claim the credit if you choose.

The homebuyer tax credit is a refundable credit that can lower the amount of federal income taxes you owe or even result in a cash payment:

If you qualify for a credit that is less than you owe in taxes, the credit will reduce your tax liability
If you qualify for a credit that is more than you owe in taxes, the government will pay you the difference
If you qualify for a credit and do not owe any federal income tax, the government will pay you the full credit amount
You must file a federal income tax return to get the credit, even if you don't owe any income taxes.

You must start paying back the credit two years after the year you bought the house. You pay back the credit over a 15-year period as an additional tax on your tax return. If you claim a $7500 credit, for example, you must pay back about $500 per year. Note: The tax credit is basically a 15-year interest-free loan from the government.

If you stop living in the house as your primary residence, or if you sell the house before the 15-year repayment period is over, you must pay back the balance of the tax credit in full. In special situations, you do not have to pay back the full amount (for example if you do not make enough profit from the sale of the house to pay back the credit, or if the taxpayer dies).

There is a way to avoid this. Just buy a house that's $15K less.

 

[petchie]

I got the above from the state resource page of Mass. but has not been updated since 1/13/09

http://www.massresources.org/pages.cfm?contentID=119&pageID=12&Subpages=yes

The other is the NAHB (national assoc of home builders)

the other report today
http://www.star-telegram.com/238/story/1185661.html

Homeownership The Senate voted Wednesday to give homebuyers a tax credit of 10 percent of the value of new or existing residences, up to $15,000. The proposal would cost an estimated $19 billion. The House limits the tax credit up to $7,500 for first-time homebuyers who purchase homes before July 1, 2009. Current law requires the credit to be repaid over 15 years. The stimulus package would repeal the repayment requirement.

Existing homeowners could get a tax credit of up to $1,500 by making their homes more energy-efficient in 2009 or 2010. Numerous projects would qualify, such as installing energy-efficient windows, doors, roofs, furnaces, water heaters and air conditioners, or adding insulation. Homeowners can get back 30 percent of their expenses, up to $1,500.

 

[LuvOrlando]

It made me tear up

 

[Charade]

I got the above from the state resource page of Mass. but has not been updated since 1/13/09

http://www.massresources.org/pages.cfm?contentID=119&pageID=12&Subpages=yes

The other is the NAHB (national assoc of home builders)

the other report today
http://www.star-telegram.com/238/story/1185661.html

Homeownership The Senate voted Wednesday to give homebuyers a tax credit of 10 percent of the value of new or existing residences, up to $15,000. The proposal would cost an estimated $19 billion. The House limits the tax credit up to $7,500 for first-time homebuyers who purchase homes before July 1, 2009. Current law requires the credit to be repaid over 15 years. The stimulus package would repeal the repayment requirement.

Existing homeowners could get a tax credit of up to $1,500 by making their homes more energy-efficient in 2009 or 2010. Numerous projects would qualify, such as installing energy-efficient windows, doors, roofs, furnaces, water heaters and air conditioners, or adding insulation. Homeowners can get back 30 percent of their expenses, up to $1,500.

Excellent! Subsidized housing for everyone!

 

[luvdzne]

I got the above from the state resource page of Mass. but has not been updated since 1/13/09

http://www.massresources.org/pages.cfm?contentID=119&pageID=12&Subpages=yes

The other is the NAHB (national assoc of home builders)

the other report today
http://www.star-telegram.com/238/story/1185661.html

Homeownership The Senate voted Wednesday to give homebuyers a tax credit of 10 percent of the value of new or existing residences, up to $15,000. The proposal would cost an estimated $19 billion. The House limits the tax credit up to $7,500 for first-time homebuyers who purchase homes before July 1, 2009. Current law requires the credit to be repaid over 15 years. The stimulus package would repeal the repayment requirement.

Existing homeowners could get a tax credit of up to $1,500 by making their homes more energy-efficient in 2009 or 2010. Numerous projects would qualify, such as installing energy-efficient windows, doors, roofs, furnaces, water heaters and air conditioners, or adding insulation. Homeowners can get back 30 percent of their expenses, up to $1,500.

What stinks is we added new windows and a few other things in 2008 that can't be deducted. If we did it in 2007 or 2009 we could deduct it. It ticks me off they are skipping 2008 for this deduction we certainly could use it.