New Tax Credit to Watch
Thursday, February 5, 2009
If you haven’t heard of the Housing and Recovery Act of 2008, listen up! It’s old news! There’s been a $7500 tax credit in place for all first time home buyers since the bill passed last year in April. It will expire in 2009. If you want some assistance getting moved in your new home, and you’re a first time buyer or haven’t bought a home in a while, then this is a great way to get help with moving expenses, etc.
But the NEWS is about this bill that just passed the senate…
• Provide a direct tax credit to any homebuyer who purchases any home
• 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
• The tax credit would not have to be repaid
• The amendment would allow taxpayers to claim the credit on their 2008 income tax return
• Only purchases of a principal residence
• Recapturing the credit if the home is sold within two years of purchase
• Would sunset the current $7,500 housing tax credit on the date of enactment.
This has passed the Senate, but the entire bill does need to go back to the House, and be signed by the President. There could be many changes before this happens, or not pass at all. But is it a bright piece for us in the Real Estate industry and would help the housing crisis immensely as you can imagine.
Christian Russell writes a blog on the economy, real estate and success in business called My One Hundred Things.