$15,000 tax credit for first time home buyers PASSES

[helderheid]

February 4, 2009, 7:19 pm
Tax Credit for Homebuyers Passes
By Kate Phillips

Within just a few moments of beginning votes on several amendments to the stimulus package, the Senate easily passed by voice vote two measures that were popular on both sides of the aisle.

The swift passage of a tax deduction for homebuyers and a small business provision was yet another sign — like the car-buying incentive passed last night — that the types of items attracting strong Republican support are those that put money in consumers’ pockets or provide tax breaks to persuade them to spend. (Related article by David Herszenhorn.)

Since the Senate began debating the stimulus in earnest on Tuesday, Republican senators have been balking at the size of the stimulus package and the way that it is weighted (in their view) toward spending versus tax cuts. This morning, in opening remarks on the floor, Senate Minority Leader Mitch McConnell began by ticking off amendments that passed on Tuesday night, proposals that added at least $17 billion to the bill. “Unfortunately, Democrats just keep throwing more money on top of an incredibly bloated bill,” Mr. McConnell said earlier today.

(Although $11 billion of the money he mentioned is the estimated cost of the car-purchasing tax deduction — one that received broad G.O.P. support. And $6.5 more billion went toward additional money for the National Institutes of Health, which Republican Senator Arlen Specter backed.)

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http://thecaucus.blogs.nytimes.com/2009/02/04/tax-credit-for-homebuyers-small-business-break-pass/

[ixion]

1. just so much empty gestures, IMO

you can't buy a house if:
a) you can't get a decent loan, and;

b) you don't have a job, or you fear you may lose the job you have.

[stray cat]

4. Although if you are close or just waiting to do it now is the time it will help some

[ixion]

7. true... it will benefit a few people

but not overall...

[closeupready]

11. Those few are likely to be in better shape than those from whom the revenue for the credit is taken.

This is just more trickle down voodoo economics, IMO.

Meanwhile, homeowners ALREADY get a tax deduction for their mortgage interest. Let's just GIVE houses away. :eyes:

[Oregone]

2. LOL. Im going to put a '$15,000 REBATE' on my house for sale sign

What...are we at $120 billion for infrastructure stuff. A lot of the rest rebates?

[TlalocW]

3. Is it just first time homebuyers?

Not that I'm doing any better than anyone else in the country, but I was hoping that I might be able to use that credit if I bought a somewhat larger place that I could use as a storefront as well as a home.

What's a credit do anyway... Does that mean it would only apply to taxes I owe, say if I owed 16,000, I would only pay 1,000? What happens if I owe less than 15,000 or get a refund?

TlalocW

[stray cat]

5. I had heard it was not limited to first time home buyers

[SoCalDem]

9. Probably works like the "hummer" tax break a while back

Remember that one? $75K OFF taxes owed..:rofl:

It was supposed to be a business tax relief for large equipment, but the specifics of it made Hummers qualify also.. I remember ads that inferred the Hummer was "on sale..." Buy one-get one free"..

[TlalocW]

12. Still not sure how it would work.

How would I get the money? If I owed over 16,000 one year (hah), would I then just owe 1,000. If I only owed 1000, would I get 14,000?

TlalocW

[SoCalDem]

15. Those details are usually left out, purposely

:evilgrin:

[Tennessee Gal]

16. Read post #10 and regarding the tax question:

If you have $40,000 of taxable income and purchase a home for $100,000, you would get a tax credit of $10,00 (10% of the purchase price). On your tax return your taxable income of $40,000 would be reduced by the $10,000, making your taxable income $30,000.

[closeupready]

6. More lies from the media. It does NOT put money in the hands of consumers who need it most.

It puts money in the hands of those who already HAVE money, people who are much less likely to spend it and more likely to sock it away.

Meanwhile, renters get nothing. It's just a wealth redistribution from the poor and lower-income to the upper income. Bullshit.

[ozu]

8. I like it

It'll help stabilize the housing market and benefits the people who have been looking to buy their first home, but were unwilling to jump in during what was obviously a hyper-inflated market.

I still think prices need more of a correction in areas where the median home price to income exceeds the standard 3-1, but you take what you can get.

[SoCalDem]

14. If you can find a $15K house, and have $15K in cash to pay for it, maybe

LOANS are the problem..not the solution here..

Banks are slowly contracting back to the way they USED to make loans...(back in the olden days when many of US bought our first houses)..

Many people who would WANT to buy a house, may have too much debt to qualify, or not have a stable enough job-record..

and many people who might love this idea, may be too scared to jump into the market, for fear of losing their jobs in a year or so..or a month, maybe:shrug:

[Tennessee Gal]

10. The article is wrong.

The tax credit is for any home buyer, not just first time buyers.



Specifically, Isakson’s amendment to the pending economic stimulus bill would provide a direct tax credit to any homebuyer who purchases any home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislation’s enactment, and the tax credit would not have to be repaid.

The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principal residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment.

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

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

[closeupready]

13. "credit would not have to be repaid". Right. It's a $15,000 handout.

n/t

[Tennessee Gal]

17. No.

It is up to $15,000 off your taxable income for the year.

[closeupready]

18. That's a deduction.

n/t

[Tierra_y_Libertad]

19. Buy!! Spend!! For Sale Cheap!! Isn't that what got us into this mess?

Of course, it makes the politicians look like they're doing something...even if it's stupid.