Federal Tax Credit Increased to $15,000

Federal Tax Credit increased to $15,000 expected to be signed into law mid February 2009

2/11/09 - Be sure to see follow up posts - Final bill does NOT increase tax credit! Will report details when known.

Category:

Education

Tags:

• federal tax credit
• 15000 tax credit
• HR1
• homebuyer tax credit
• home buyer tax credit

[gbbengals]

This is from today..... doesn't look like we will get the $15,000 but I will be ecstatic with the $7500 if I never have to pay it back.......

Enlarge By Jim Young, Reuters

Excerpt from article

-Baucus had said earlier that $35.5 billion to provide a $15,000 homebuyer tax credit, approved in the Senate last week, would be cut back. There was also pressure to reduce a Senate-passed tax break for new car buyers, according to Democratic officials.-

[PorchLightScott]

Yes, unfortunately they killed the $15,000 homebuyer credit. I have been reviewing a copy of the bill for public print dated yesterday and there is no mention of waiving the waiving the recapture in there.

I'm still scouring the news for information and will report what I find - i think they really missed a good opportunity to help this economy out by stimulating the housing market.

[gbbengals]

Question for you?? What happens if you do your taxes say this week for the $7,500 tax credit and then it changes the following week to $15,000??? Are you grandfathered in so to speak where you can get the extra $. My tax guy thought so but wanted to ask you..

THANKS!

[PorchLightScott]

That's a great question. As far as i've heard there has been no indication. I have heard "rumors" of it NOT being retroactive but this is totally unsubstantiated.

It doesn't make sense to me that they would go backwards and retroactively double a tax credit that someone has already claimed.

But then again, it is the federal government and it's difficult to follow their motivation for much of anything.

I am advising my clients to hold off on filing - we should know for sure within days

[PorchLightScott]

I found the Senate bill and posted a new video - check it out. They do propose an "effective date" in that version.

[reibroker]

Good speed getting this out, Scott!

[PorchLightScott]

This is really great news. I think this will go a long way to stimulate the real estate market and help new homeowners be able to afford some really nice furniture :)

[damnright4]

this is crazy..If house prices were not artificially inflated...we would not need an 8000 or 15000 dollar bribe to buy one..

[evramos70]

the oil, gas and electric companies have used up these credits so if your a home owner your out of luck.

[gbbengals]

Looks like they have come to an agreement....this was in USA Today this morning

HOUSING/CARS: Buyers could get a modest break

If you're in the market for a new car or your first house, the compromise stimulus bill offers modest tax breaks.

First-time home buyers would receive an $8,000 tax credit, and they wouldn't have to repay the government later as is required for the current $7,500 credit. An earlier Senate proposal would have provided all home buyers with a $15,000 credit.