The current version of the stimulus bill could provide homebuyers with a tax credit of $15,000 if they purchase within a year.
Now is the time to but a home if you have been considering it.
The Senate has upped the Annie to $15,000 of the tax provision the House proposed originally at $7,500. Credit would also apply to all buyers not only first time homebuyers.
The Senate version also has no income limits. The House's version only allows the incomes up to $75,000 for singles and $150,000 for couples to qualify for the full amount.
Even better yet this version does not require buyers to repay the credit.. The old credit worked more like an no interest loan rather than a true credit.
The National Association of Realtors predicts the Senates version will attract an additional one million buyers who would otherwise wouldn't have purchased a new home.
Right now consumers are saying, "Why buy?" With more money on the table more people are going to jump at the opportunity.
But there is a draw back. The Senate version, unlike the House version, is non-refundable. For example, if the amount you owe is lees than the credit, you only get an amount equal to your total tax bill. So, if your tax bill was $7,000 your debt would be zeroed out, but you would receive the remaining $8,000.
But you will be able to spread the tax credit out over two years the in the above example you would be able to claim the remaining $8,000 on the following years tax return.
What irks me is it's not retroactive. Which sucks for me because I bought a foreclosure last year. The Senate tax credit is good for one year after the bill goes into effect. For both bills homebuyers must live in the homes for two years or forfeit the credit.
The housing crisis is one of the biggest problems in our economy right now and there really isn't much in the stimulus bill to help housing. So let's hope this will do the trick.
This seems like a pretty good contribution to help the economy. Although, I still say they make it retroactive. Damn!
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