Update! Stimulus Advances With Tax Credit Changes

By
Real Estate Broker/Owner with Action Investments and Hawaii Pacific Realty BRE Lic# 01481898

According to the Realtor Report, "The $790 billion stimulus package hammered out by House and Senate conferees late yesterday increases the home buyer tax credit to $8,000, from $7,500, and drops the repayment feature for buyers who hold on to their property for at least three years.

The legislation also extends the effective date of the credit to December 1 from June 30, and extends eligibility to borrowers who buy their home with the help of state or local financial assistance that comes from the proceeds of tax-exempt mortgage revenue bonds.

The credit remains open only to first-time buyers (those who haven't owned in at least three years) and some income eligibility restrictions apply, but those are unchanged from the existing program.

2009 Federal Tax Credit (IRS Form 5405)- The tax credit does not have to be repaid. The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000. The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.  Income limitations apply.

Posted by

Jason Hector, Real Estate Broker, CA Dept of Real Estate Lic. #01481898
(818) 357-9658 Cell
(866) 791-3290 Fax
jhector@socal.rr.com
www.jasonhector.com
Broker--Action Investments
11630 Seminole Circle
Northridge, CA 91326
(800)-626-6469 Phone
(866)-791-3290 Fax

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Anonymous
Anonymous

So much for that.  The compromise bill is yanking it...

Feb 11, 2009 05:51 AM #1
Anonymous
vchase64@yahoo.com

The 15,000 tax credit did not pass it was removed from the bill.  Take a look at the following:

http://www.msnbc.msn.com/id/29136678

Feb 11, 2009 09:11 AM #2
Anonymous
Wrong

Working to accommodate the new, lower overall limit of the bill, negotiators effectively wiped out a Senate-passed provision for a new $15,000 tax credit to defray the cost of buying a home, these officials said.

Feb 11, 2009 01:02 PM #3
Anonymous
question

Do you know what the compromise is?  What is in the final version?  And if something does pass is it only for new purchases after January 1, 2009 or does it start earlier in 2008?

Feb 12, 2009 06:54 AM #4
Rainer
20,742
Jason Ian Hector
Action Investments and Hawaii Pacific Realty - Porter Ranch, CA
Real Estate Broker in California and Hawaii

Thanks to all that commented, lets hope that Obama signs the bill.

Feb 13, 2009 09:52 AM #5
Rainer
20,742
Jason Ian Hector
Action Investments and Hawaii Pacific Realty - Porter Ranch, CA
Real Estate Broker in California and Hawaii

I have updated this blog with the IRS form link.

Jul 16, 2009 03:59 PM #6
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Rainer
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Jason Ian Hector

Real Estate Broker in California and Hawaii
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