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Started By
Message
re: $7500 tax credit - clarification
Posted on 2/10/09 at 8:44 am to TheDoc
Posted on 2/10/09 at 8:44 am to TheDoc
Whenever the new credit is enacted, the other option will be automatically phased out. Therefore you will not be given a choice. If your closing date was pre-enactment, you go with the 7500. If its post enactment, you get the new credit. I'm hoping however that the new credit becomes retroactive for all of 2009.
1
Posted on 2/10/09 at 8:51 am to Croacka
quote:
Whenever the new credit is enacted, the other option will be automatically phased out. Therefore you will not be given a choice. If your closing date was pre-enactment, you go with the 7500. If its post enactment, you get the new credit. I'm hoping however that the new credit becomes retroactive for all of 2009.
So even though the $7500 proposals are all dated April 2008 - July 2009, it won't matter anymore?
I'm just trying to decide if I should file NOW to get the $7500 or not (TheDoc said you can file to get the credit BEFORE you actually close), because the $15K credit won't help me at all.
Posted on 2/10/09 at 8:57 am to Ziggy
quote:
So even though the $7500 proposals are all dated April 2008 - July 2009, it won't matter anymore?
The old plan will end when the new one starts, ignore the July 2009.
quote:
I'm just trying to decide if I should file NOW to get the $7500 or not (TheDoc said you can file to get the credit BEFORE you actually close), because the $15K credit won't help me at all.
I'm in the same boat, I didn't pay 7500 in taxes, but it is my understanding if you get the old credit, you will still have to pay it back. I'm waiting for confirmation on this. If I get the new one I may get less, but I don't have to repay it.
If the new plan is refundable, then it doesn't matter. We get 15K or 10% no matter what. The thing I want to know most is if the new plan will date back for all of 09 and no one can answer this.
ETA: You can file before you close and amend your return later, but I don't think you can claim for the 7500 if you haven't closed imho.
This post was edited on 2/10/09 at 8:59 am
Posted on 2/10/09 at 9:05 am to Croacka
hopefully, the new bill is passed, and those that have gotten a 7500 tax credit, can claim the other 7500 too.
this bill needs some more details, that's for sure.
this bill needs some more details, that's for sure.
Posted on 2/10/09 at 9:06 am to Ziggy
quote:
I'm just trying to decide if I should file NOW to get the $7500 or not
i've been hearing that people should file NOW.
but don't quote me on that.
Posted on 2/10/09 at 9:11 am to TheDoc
quote:
hopefully, the new bill is passed, and those that have gotten a 7500 tax credit, can claim the other 7500 too.
I'm not sure but from everything I'm hearing, the new bill will not affect those that have already claimed the 7500 last year or early this year. I know its bad news, but you may still have to pay the 7500 back.
IMO, they are trying to spur the market, so why would they give more money to people who have already bought homes? That extra money wouldn't do anything to help the current real estate market. JMO
Posted on 2/10/09 at 9:22 am to Croacka
quote:
I'm not sure but from everything I'm hearing, the new bill will not affect those that have already claimed the 7500 last year or early this year. I know its bad news, but you may still have to pay the 7500 back.
where have you seen that?
everything i've read about it says if you buy a house in 2009, you won't have to pay the 7500 back.
Posted on 2/10/09 at 9:27 am to TheDoc
Posted on 2/10/09 at 9:27 am to Croacka
quote:
Croacka
You seem to know what your talking about, maybe you can help me with this qestion...
What does this mean:
quote:
• Home cannot be financed through mortgage revenue bonds.
Posted on 2/10/09 at 9:33 am to Glock17
I don't think thats a typical situation for most people. (MRB)
I'm not in the business or anything, I've just been doing a good bit of research because I'm closing on my own home this month and I'm considering my options.
I'm not in the business or anything, I've just been doing a good bit of research because I'm closing on my own home this month and I'm considering my options.
Posted on 2/10/09 at 9:34 am to Croacka
here's my situation:
bought a house on february 6th 2009.
paid 11,000 in taxes for 2008.
received the 7500 for a new home buyer.
I don't make over 75,000 a year.
so i'm not going to have to pay this 7500 back am i? according to this bill?
bought a house on february 6th 2009.
paid 11,000 in taxes for 2008.
received the 7500 for a new home buyer.
I don't make over 75,000 a year.
so i'm not going to have to pay this 7500 back am i? according to this bill?
Posted on 2/10/09 at 9:35 am to TheDoc
quote:
Are there any repayment requirements on the tax credit? No. The Senate proposal does not require the credit to be paid back. The House proposal eliminates a 15-year repayment provision on the existing $7,500 tax credit.
Posted on 2/10/09 at 9:37 am to TheDoc
quote:
No matter what happens, you won’t get to choose the proposal that’s best for you. Only one law will exist.
If the stimulus doesn’t pass, you get the old $7500 that you need to repay.
If it passes BEFORE you purchase, you get whatever they decide on.
If the House version passes AFTER you purchase, then you get $7500 that you don’t have to repay (refundable).
If the Senate version passes AFTER you purchase, then you get the old $7500-and-repay thing..
Posted on 2/10/09 at 9:40 am to TheDoc
quote:
Are there any repayment requirements on the tax credit? No. The Senate proposal does not require the credit to be paid back. The House proposal eliminates a 15-year repayment provision on the existing $7,500 tax credit.
I think that provision goes into effect for people that apply for the new plan. I've read other articles that use different wording and it seems to be clearer.
All that answer is doing is telling you the difference in the old plan and new plan. IMO
Don't hold me to any of this, its all just my thoughts.
I think we'll know all we need to next week.
If you already applied for the older one, you don't have any decisions to make. Just wait and see. I have to decide whether to close before or after the bill is signed.
Posted on 2/10/09 at 9:42 am to Croacka
where did those quotes come from, the same article? Were they reader comments?
Posted on 2/10/09 at 9:43 am to Croacka
quote:
Just wait and see. I have to decide whether to close before or after the bill is signed.
I don't have a choice, since my closing date is on the 27th of this month.
Posted on 2/10/09 at 9:44 am to Ziggy
so my sister bought in April of 08. is there any chance of changing her 7500 credit to one that wont be paid back?
This post was edited on 2/10/09 at 9:45 am
Posted on 2/10/09 at 9:44 am to Croacka
quote:
If the new plan is refundable, then it doesn't matter. We get 15K or 10% no matter what.
I don't understand this.
I thought you ONLY get the $15K or 10% of purchase price IF you OWE federal income tax (i.e. you owe $15K so you get $15K back essentially).
Posted on 2/10/09 at 9:48 am to Ziggy
quote:
i also just closed on a house and filed my taxes and got the 7,500… but if this thing passes i’m going to file an ammendment and change the purchase date to get the additional 7,500 and not have to pay back anything. the worst that will happen is get audited and have to pay 7500 of it back immidiately and pay out the other 7500 over time like normal. just hold onto it for three years and if they dont audit you by then they cant hold it against you anyway
Comment by ~~~~~~ - February 9, 2009 at 5:54 pm
this guy's thinking is fricking funny
Posted on 2/10/09 at 9:50 am to Ziggy
quote:
I thought you ONLY get the $15K or 10% of purchase price IF you OWE federal income tax (i.e. you owe $15K so you get $15K back essentially).
The senate's plan is refundable, you get it no matter how much your taxes were.
The house is non-refundable, you can only get as much as you paid.
We'll have to see how they combine the plans, or which one passes?
Read the user questions on the previous link, the author seems to answer many of them well, and he seems to know what he's talking about.
There are lots and lots of questions, so I'm sure your question could be answered in the article.
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