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Senate passes $15,000 tax credit for home buyers!

By Troy Batson

Managing Real Estate Broker with The Lowes Group 200410321

February 04, 2009 11:25 AM

The U.S. Senate, in a voice vote, passed the $15,000 tax credit or 10% of the home purchase for ALL home buyers. The credit can be spread over two tax years. It also amends the current $7,500 tax credit to a true tax credit for those who purchased their home earlier. The vote was supported by both sides of the aisle. I'm hoping this type of stimulus as opposed to the "spending stimulus" is what our slumping housing market needs.

Now if the Republicans can get mortgage rates down to 4% or less we could really see see our "fence sitters" jumping back into the market. Here's looking to a brighter future!

Troy Batson is a Licensed Broker in the State of Oregon ~ troybatson.com ~ Bend, OR ~ Duke Warner Realty

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Lora "Leah" Stern 914-772-4528

Coldwell Banker, 170 N Main Street, New City NY 10956 - New City, NY

Real Estate Salesperson

Troy, Is this tax credit "for all home buyers" for purchases within the same time span that was in effect for the $7,500 credit? When you say that "It also amends the current $7,500 tax credit to a true tax credit for those who purchased their home earlier" - Earlier than what? And by making this a true tax credit, does it mean that it is now a gift instead of a loan?

Feb 04, 2009 11:38 AM

Mark Brian

Silver Star Real Estate LLC - Anderson, SC

Anderson SC Realtor

This was just a voice vote in only the Senate, not the House? So is it just the politicians acting like they did something?

Until it is passed by both the House & Senate, signed into law by the President- it is all just talk.

Talk talk talk. Politicians talk all day and never say anything OR do anything in this time of need for the average American.

Feb 04, 2009 11:53 AM

Troy Batson

The Lowes Group - Bend, OR

Bend Oregon Real Estate

Lora, the $15,000 would be going forward, after the bill is enacted. The amended $7500 tax credit was initially a 15 year, zero interest loan, now it will be a true tax credit not to be repaid. The 2008 American Housing Rescue and Foreclosure Act is what they are amending.

Feb 04, 2009 01:25 PM

Derenda Grubb

CENTURY 21 Mike D. Bono & Co.'s - Lake Charles, LA

GRI, ABR, CRS

This certainly appears to be great news on the surface. Lets see how it plays out and see if it actually accomplishes what we need.

Feb 04, 2009 06:43 PM

Anonymous

Tom Anderson

We're currently paying on a Construction loan with a local bank. House is done and we're now shopping for a 30 year fixed... Would this qualify for the $15,000 tax credit?

Feb 05, 2009 10:00 AM

Tom, I would consult your tax accountant on that question. My guess would be that it would qualify for the $7,500 tax credit that was amended and not the $15,000 because it has not been enacted yet. Once again, that's my guess.

Feb 05, 2009 10:16 AM

Jason

I was wondering, if this bill passes, it states $15,000 or 10% of the homes valve. Does this mean if I buy a 120,000 house, I get $12,000 tax cut. And what I have been reading this a tax break, not to be repaid right? Thanks for any help

Feb 06, 2009 01:37 PM

Jason, You are correct on both counts. The tax credit will offset, dollar for dollar, any tax liability you have. The tax credit can also be spread over two years if your tax liability is not as large as the credit.

Feb 06, 2009 03:12 PM

Thanks for the answer, so to clearify, I would probaly get a tax credit of $12,000 for a 120,000 house, and that would have to be spread over two years

Thanks Jason

Feb 06, 2009 11:03 PM

I was wondering, did the $15,000 tax credit make the new stimulus bill

Feb 11, 2009 12:00 PM

#10

Jason, I've been scouring the news feeds looking for that answer. So far everything I've found says it was axed from the final version. The only thing I have found is the previous $7500 first time home buyer tax loan will be converted to a true tax credit. I have yet to find anything that states it will be extended to the end of the year. I'll create a post once I've got the final version.

Feb 11, 2009 01:02 PM

Senate passes $15,000 tax credit for home buyers!

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