While investigating this Stimulus package, I found out that the Senate added to make interest payments on most auto loans and sales tax on cars deductible! This new legislation will mark the first time since 1986 that car buyers will be able to write off their auto loan interest. Funny, I got my first car in 1986.
Though, I would recommend to my clients to purchase the house first then go for the new car, not the other way around.
I received an email from Keller Williams International which included this information and helpful links:
New stimulus package proposes tax credit for home buyers
Last week, the Senate verbally approved the Fix Housing First Act, an important amendment to their version of the 
Economic Stimulus Bill. The piece of legislation and the Stimulus Bill are still awaiting Senate and House negotiations, but could provide all home buyers of primary residences over the next year with a tax credit of $15,000 or 10 percent of the cost of the home, whichever is less. The credit will not need to be repaid unless the home is sold within two years of purchase. This Senate's version of the tax credit, if implemented, will replace, or "sunset" the current $7,500 credit.
As leaders in the real estate industry, it is important to recognize the relevance of this amendment which could set the housing market on a course toward recovery.
If you are not familiar with this Act, please click here for more information.
- Click here to download a step-by-step guide for contacting your Senator or Representative via phone or email.
- Click here for a composed note to send to you Senator or Representative.
Should the legislation become a law, it will act as a major incentive for home buyers and, coupled with several years of pricing corrections could boost the number of home sales around the country. Until then, get free information on the current $7,500 tax credit for first-time home buyers.
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