The High Road Papers - Latest Comments in Home Buyer Tax Credit Passes Both House and Senate

Re: Home Buyer Tax Credit Passes Both House and Senate

dpellegrini — Tue, 10 Nov 2009 16:45:23 -0000

Thanks Jay. You beat my realtor to the answer on this one :P

Re: Home Buyer Tax Credit Passes Both House and Senate

Jay Thompson — Tue, 10 Nov 2009 00:27:24 -0000

Yes, Senator Isakson's office confirmed to a journalist that the $6,500 credit was effective on the date of enactment (Nov 6). Sorry, but I can't find the link to that. Know that's what I read though...

Re: Home Buyer Tax Credit Passes Both House and Senate

Jay Thompson — Tue, 10 Nov 2009 00:25:57 -0000

Just found this in the legislation:

"(g) Election to Treat Purchase in Prior Year.--In the case of a purchase of a principal residence after December 31, 2008, a taxpayer may elect to treat such purchase as made on December 31 of the calendar year preceding such purchase for purposes of this section"

My interpretation is the key words are "... of the calendar year PRECEDING such purchase..."
To me, that means if you buy a home in 2009, you could amend your 2008 return. And if you buy a home in 2010, you could claim it (or amend) on your 2009 return. But you can't buy in 2010 and amend 2008 -- that wouldn't be "the preceding year".

But I'm no attorney / politician / CPA.

Re: Home Buyer Tax Credit Passes Both House and Senate

Jay Thompson — Tue, 10 Nov 2009 00:16:19 -0000

Nate - everything I'm reading and hearing says the $6500 credit was effective on the date of enactment (Nov 6). I'm 99% sure you could apply the credit for a home purchased in 2010 to your 2009 return. Haven't dug deep enough to see if you could amend 2008.

Re: Home Buyer Tax Credit Passes Both House and Senate

andys2i — Mon, 09 Nov 2009 22:03:31 -0000

sweet!

Re: Home Buyer Tax Credit Passes Both House and Senate

Nate — Mon, 09 Nov 2009 16:19:48 -0000

Can anyone confirm if the $6,500 credit is effective immediately, or starting Dec 1? Also, if you buy in 2010 can you still apply the credit to an amended 2008 tax return?

Re: Home Buyer Tax Credit Passes Both House and Senate

JR of Sun City Real Estate — Sun, 08 Nov 2009 19:38:20 -0000

This is just one of the few things that the government should really focus but they should also look at some other issues and think of a long term solution not a patch on an existing hole.

Re: Home Buyer Tax Credit Passes Both House and Senate

SusieBlackmon — Sun, 08 Nov 2009 05:29:45 -0000

Until the job market improves, I am not too excited about this latest fluff job, and I was not for the extension either.

Sincerely appreciate the clarification/interpretation in your blog.

Re: Home Buyer Tax Credit Passes Both House and Senate

Matt Stigliano - @rerockstar — Fri, 06 Nov 2009 18:28:08 -0000

Well Jay, the day has finally come. We knew it would somehow, but when was the question. I'm surprised at how quickly this moved, mainly because I expected them to drag it out to at least November 28. Nothing like a little suspense.

You know my feeling on the tax credit, but I will be sending you some posts in the near future as I've had some time to digest some of my thoughts on the ramifications of the move-up part of the extension. I don't like what I see and when I break it down, I can only hope that I'm wrong. If not, things could get messy if we're not careful.

Thanks for being one of the most outspoken people on your feelings about this. It's inspiring to guys like me who have a desire to speak up, even when we're bucking the trend.

Hope you get some clips from CBS5.

Re: Home Buyer Tax Credit Passes Both House and Senate

dpellegrini — Fri, 06 Nov 2009 16:37:02 -0000

This is great news for my wife and I, as we are trying to close on a Short Sale upgrade.

If I am reading this right, it looks like the $6,500 credit is effective immediately - Can anyone confirm this?

THE DETAILS:

The $6,500 credit is described in Paragraphs (b) and (c) of SEC. 11. EXTENSION AND MODIFICATION OF FIRST-TIME HOMEBUYER TAX CREDIT.

http://www.govtrack.us/cong...

And, if you read further, it enacts this new credit on signature in Paragraph (j)(1):

(j) Effective Dates-

(1) IN GENERAL- The amendments made by subsections (b), (c), (d), and (g) shall apply to residences purchased after the date of the enactment of this Act.

(2) EXTENSIONS- The amendments made by subsections (a), (f), and (i) shall apply to residences purchased after November 30, 2009.

It appears to be the $8,000 extension that goes into effect on Dec 1 (since the current one is still valid through the end of November) in paragraph (j)(2). This was described in SEC. 11, paragraph (a) and tied out in (j)(2).

Re: Home Buyer Tax Credit Passes Both House and Senate

redbluffpropertymgmt — Fri, 06 Nov 2009 13:24:37 -0000

It's official!

Re: Home Buyer Tax Credit Passes Both House and Senate

Gainesville Real Estate — Fri, 06 Nov 2009 09:53:26 -0000

Great information! One of my buyers signed a contract yesterday (who needs to close asap because she sold her home) and I had enough foresight to use Dec 1 as the closing date. I hope she will be eligible for the credit - it's definitely worth trying to hold off closing a week for $6,500.

As for the credit overall - I think it's a waste of money. I have many buyers and the credit is an afterthought to them.

Re: Home Buyer Tax Credit Passes Both House and Senate

Michael — Fri, 06 Nov 2009 06:53:25 -0000

Next breakdown of the facts. It's a burden for each of us to reconcile the ramifications of economic stimulus bucks. At the end of the day we all have opinions, but the long tug on the rope is what? What would each of us do to fix the stupid of the last eight years? I believe if we look inward and thank the deity of choice for the NEW BUSINESS this will bring to the economy, we'll see it's not a bad thing.

Re: Home Buyer Tax Credit Passes Both House and Senate

SpokaneHomeGuy — Thu, 05 Nov 2009 23:55:48 -0000

Lots of things going on. The unemployment extension is crazy - but I do know a lot of people out of work and that are still losing their jobs. I'm still unsure on the whole homebuyer tax credit, but my favorite part is the "long time resident" incentive, finally starting to reward existing homeowners, I wonder what this will do to listing inventories this winter season :)...

Re: Home Buyer Tax Credit Passes Both House and Senate

☆ Mariana ☆ Wagner ☆ — Thu, 05 Nov 2009 19:06:48 -0000

You are now the "official" Home Buyer Tax Credit Extension Guru. Thank you for keeping us updated.

Re: Home Buyer Tax Credit Passes Both House and Senate

Jay Thompson — Thu, 05 Nov 2009 15:17:48 -0000

That's a *great* point Cindy! I'll admit I haven't paid much attention to the unemployment extension specifics, but it is very significant. Kind of a statement of the overall condition of the economy... and it's not going to be cheap either....

Re: Home Buyer Tax Credit Passes Both House and Senate

RandyHooker — Thu, 05 Nov 2009 15:00:11 -0000

I'm not a fan of the tax credit, either. How do folks think it's "free" money? As you've stated before, in more ways than one, the cost to our kids and grand-kinds is going to be VERY high. Nice break-down, Jay.

Re: Home Buyer Tax Credit Passes Both House and Senate

Missy — Thu, 05 Nov 2009 14:47:52 -0000

Thanks for the update Jay - great way to break it down into something readable! I also am not a huge proponete of the extension. It has started to causes chaos in our market where we have people that really should not yet be in the market to purchase, yet are trying to do so just for some "money in their pocket". Deals are falling apart left and right as the deadline looms - resulting in some very unhappy sellers (and agents as well!). The market will correct itself given the chance and will do so more swiftly without this artificial inflation of numbers.

Re: Home Buyer Tax Credit Passes Both House and Senate

Jay Thompson — Thu, 05 Nov 2009 14:45:45 -0000

Crapola? In CONGRESS? Say it ain't so... ;)

Re: Home Buyer Tax Credit Passes Both House and Senate

cindy jones — Thu, 05 Nov 2009 14:40:45 -0000

I have been frustrated the last few days on the focus of the home buyers credit extension and not the fact that this is tied to a much larger issue. Unemployment! This is the longest extension to unemployment benefits since the 1970's.

Re: Home Buyer Tax Credit Passes Both House and Senate

startabuzz — Thu, 05 Nov 2009 14:32:44 -0000

FANTABULOUS! The post, I mean. I so enjoy the machete with which you slice through all of the BS. I agree with you about the credit. While I'd certainly claim it were I eligible (hey, I'm not a dum-dum) AND in the market for a home, I am skeptical about it. Yes, lots of people have claimed it. But, as you point out, it's a huge burden to our already-weighted-down budget. And I really wonder about the number of people -- first time home buyers -- who've used it. Would they REALLY not have bought a house if not for the credit? With mortgage rates as low as they are, not to mention the huge surplus of properties for sale, would that not have been enough? Has it really given the industry THAT much of a shot in the arm? But I ramble. Thank you, Jay, for cutting through the Congressional Crapola. :)

Re: Home Buyer Tax Credit Passes Both House and Senate

Perri K. Feldman — Thu, 05 Nov 2009 14:31:11 -0000

Great interpretation...all we need now is the signature!