The Mesquite Nevada Real Estate Blog

Mesquite NV Real Estate - 15000 tax credit for homebuyers beats 7500 loan

This could be good news for Mesquite Nevada home buyers who buy a home as a principal residence.  The $7500 tax credit was actually a loan with no interest for 1st time homebuyers, yes, it did have to be paid back.  This new $15000 tax credit, if approved, may actually be a tax credit for those who purchase a principal residence - and not just for first time home buyers.

Luke Mullins on the Home Front has an article with The 6 Things You Need to Know about the 15000 Credit.

You will NOT be able to use both the 7500 1st Time Buyers tax credit and the 15000 tax credit.

The 15000 tax credit has NOT been passed into law!  When/if it is - there will likely be changes to the initial amendment.

As Jay Thompson says, there are 15000 Questions about the 15000 Tax Credit.

From Alan Gross, a Bethesda Maryland loan officer:

Will There Be a $15,000 Tax Credit For Homebuyers?

A new amendment to the economic stimulus package working it's way through congress was unanimously approved on February 4th. The amendment proposed by U.S. Senator Johnny Isakson, R-Ga. would increase the current "tax credit" of $7,500 to $15,000.

The amendment would provide a direct tax credit of 10% of the purchase price up to a maximum of $15,000 for the purchase of a home. The property purchased must be used as a primary residence. The credit would allow taxpayers to claim the credit on their 2008 tax return. Under the amendment the tax credit would have to be repaid if the home is sold within two years of the purchase. Purchases would have to be made within one year of the legislations enactment. The tax credit will not be limited just to first time homebuyers.

The legislation would sunset the current $7,500 housing tax credit.

"It is time to fix America's problem, not throw money at the symptoms. It is time to fix housing first. It is rare that we have a road map to success in times of difficulty, but this country has once before realized a housing crisis every bit as bad as the one we have today and economic troubles every bit as dangerous,"
Isakson said. "We have a pervasive housing problem, and we have a historical precedent that works. I am proud this Senate has joined together, learned from history and repeated a method that worked by adopting this amendment."

To view the press release: Senate Unanimously Approved Isakson Amendment to Stimulate Housing Market.

This amendment could have positive effect on real estate sales in 2009. I will continue to monitor the progress of the legislation and keep you posted on it's progress.

Call me with any questions you have concerning the current market.

 

                                 Mesquite Nevada Real Estate Agent  ~ ~  ERA

Virginia Hepp
 
Virginia Hepp ~ Mesquite Realtor
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Comment balloon 20 commentsVirginia Hepp - Mesquite NV REALTOR • February 05 2009 06:46PM

Comments

Virginia:  Thanks so much for researching the details on this incredible tax credit.  And... the fact that it would only have to be repaid if the subject home was resold within two years makes it a great stepping-stone move for buyers who would want to be sellers two-plus years from now.  Thanks for sharing.

Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) over 9 years ago

This really is great news and should help to get things moving! Thanks for your post, and hope you are doing well in this new year :-)

Posted by Mara Hawks, Inactive-2012 REALTOR - Homes for Sale Auburn Real Estate, AL (First Realty Auburn ) over 9 years ago

what will happen if you already have taken the $7500 tax credit

Posted by tblaha over 9 years ago

Karen - thank you and I see that you have a post about the 15000 tax credit also.

Mara - I am doing well, hope you are, too - this credit should help us.

tblaha - Good question, I have no idea if you can take both credits - but I doubt it.  We will have to find out.  When/if it is approved, there will be criteria and it will be interesting - but at the moment, it is not final.  The 7500 tax credit is actually a no interest loan and the 15000 tax credit is supposed to be a true credit.

Posted by Virginia Hepp - Mesquite NV REALTOR, Mesquite NV Homes and Neighborhoods - Search MLS (ERA - Mesquite NV Homes For Sale) over 9 years ago

It would be incredible if it got through and approved. This is the one that would have a meaningful impact!

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) over 9 years ago

This is TERRIBLE news for lower income families.  This credit is only good for the amount of taxes that you owe.   The original $7,500 credit was a rebate even if you didn't owe that much in taxes.

I am currently looking to buy a house and would qualify under the existing $7,500 credit.   However, since my income is less than $50,000 per year, I will not owe enough taxes to get the full benefit of the new bill.    I would be better off with the original tax credit.

It's a good credit for the wealthy, but not for people with a median income.

 

Posted by Jennifer over 9 years ago

I am planning to purchase a home this year around June/July.  I do owe taxes for 2008.  Is there any way to apply the $15000 tax credit to my taxes owed for 2008 without having to purchase before April 15th?  Any comments would be appreciated.

hermanjlyons@hotmail.com

Posted by Herman over 9 years ago

Bill - it would really make a difference to those who qualify income-wise.  I don't see that it will help lower incomes that much.

Jennifer - you could be right.  Remember though, that the 7500 credit is actually a loan.  A good one, I would love to have an interest free loan payable @500 per year.  Also - the way it is written now, the 1500 credit could be spread over 2 years and that would help with lower income.

Herman - I don't think so - if it is voted in, the 15K credit would be given for houses purchased after it became law, but it would be a credit on 2009 taxes.  Your tax advisor will be able to give you advice.

From Luke's article, above:  "Can I take the credit during tax year 2008? Yes, says Chris Cook, a legislative assistant to Sen. Isakson. Even if you buy a home in 2009, the provision would enable you "to file your taxes as if you purchased your home on December 31 of 2008," he says."

 

Jennifer and Herman - please read Jay Thompson's thoughts on the 15000 tax credit.

Posted by Virginia Hepp - Mesquite NV REALTOR, Mesquite NV Homes and Neighborhoods - Search MLS (ERA - Mesquite NV Homes For Sale) over 9 years ago

This $15k deal was added in by Republicans, specifically designed to be a gift for wealthier Americans (surprise!). Most people WILL NOT qualify for this, certainly the people who NEED this kind of money won't see it. It will simply be a $15k bonus for wealthy people who not only don't need it, but who could have bought their home just fine without it. This WILL NOT send tons of average familes to the real estate office. It will make rich people $15k richer though, so if you think that's worth getting excited about, then happy day for you. Just more greed, brought to you by the greed-masters who got us into this mess in the first place.

Posted by Senior NCO over 9 years ago

Senior NCO - It's true that many people would not be able to take advantage of the full $15K credit. But, as it is currently written, the credit can be spread evenly over two years. So that means that even if you didn't pay enough taxes to get the full $15K benefit, you would in effect be paying zero income tax for two years.

That's not such a bad thing....

(and thanks for your service to our country!)

Virginia - thanks for the linkage!

Posted by Jay Thompson (Zillow) over 9 years ago

I hear your point and I agree, it's not altogether a bad thing. My major issue with this is, why would you design something to help those who need it the least, and not for those who need it the most? I don't feel the need to go out of my way to get a Prime Rib dinner for someone who already has a T-bone on their plate.

Posted by Senior NCO over 9 years ago

Senior NCO - I agree that it would be a gift for wealthier Americans, no surprise to me either.  But I do see advantages for the rest of us, too.  And if it did boost the economy, that would help us all.  Your Prime Rib point is excellent, thank you.  Remember, too, that the amendment will most likely be amended before it is passed into law.  The 15000 credit seems to be the most talked about subject since it was reported in the news on Feb 4th.

Do you think anyone up on the hill is listening to us?

Jay - thank you, your title caught my eye!

Posted by Virginia Hepp - Mesquite NV REALTOR, Mesquite NV Homes and Neighborhoods - Search MLS (ERA - Mesquite NV Homes For Sale) over 9 years ago

I view this as a good thing, I'm just stating my personal opinion, which nearly always carries with it a heavy blue collar working class chip on the shoulder. It is my fondest hope that the critical actions of our elected officials will get our ship on course, and that we can start making our way back to the top of the economic heap, or at least near to it, where we belong. Whatever helps, I'm for. Not to be too dramatic, but this may be the single most important event in most of our lifetimes, and we better get it right:)

Posted by Senior NCO over 9 years ago

Senior NCO - I appreciate your opinion and comments here.  I share your blue collar chip - I have worked hard all of my life and I am proud of it.  I have 2 son-in-laws in the military and my daughters both were laid off from their jobs - when their husbands both go to Afghanistan in a couple of months, they will have a hard time financially.  Every setback to the economy affects our families directly and immediately.

"Not to be too dramatic, but this may be the single most important event in most of our lifetimes, and we better get it right:)"

 

 

Posted by Virginia Hepp - Mesquite NV REALTOR, Mesquite NV Homes and Neighborhoods - Search MLS (ERA - Mesquite NV Homes For Sale) over 9 years ago

I'll be keeping your family members in mind as they venture into harm's way. Amazing things those men and women are doing over there, against near impossible odds. Please pass along my thanks to them for all they do.

Posted by Senior NCO over 9 years ago

Thank you, I will.

Posted by Virginia Hepp - Mesquite NV REALTOR, Mesquite NV Homes and Neighborhoods - Search MLS (ERA - Mesquite NV Homes For Sale) over 9 years ago

As you know, last week we achieved a significant procedural victory when the Senate voted to include the $15,000 home buyer tax credit.


TODAY, THE TAX CREDIT IS IN JEOPARDY!!


Due to the maneuverings in the Senate over the weekend, there are rumors that the Senate may want to scale back the tax credit. You can read about some of the reasons below.


We have heard from some of our sales offices and similar reports from other homebuilders, the National Association of Home Builders, the Realtors, and others that the public likes the proposed $15,000 tax credit. They are finally saying that it will stimulate them to buy a home.


We need all of you to call your U.S. Senators TODAY as they will be voting tonight and tomorrow.


The process is still very simple. Follow the instructions below to make the call. It takes about 2 minutes.


PLEASE CALL TODAY!  Beginning the morning of Monday, February 9, please call your Senators at 1-866-924-NAHB (6242) and tell them to preserve the entire $15,000 credit in the Senate version of the economic stimulus bill.

1-866-924-NAHB (6242) Hotline Instructions

After listening to a brief message about the tax credit, you will be asked to enter your zip code so that you can be connected to your House and Senate legislators.  The tax credit message should only go to your Senators.  So, after the prompt, please press "2" to skip your Representative and be connected to your first Senator.  After you speak to your first Senator, simply stay on the line to automatically be connected to your second Senator. 

Posted by Vicki Watzlawick, Illinois Foreclosure Expert, The Watz Team ( Broker (The Watz Team) Exit Real Estate Partners) over 9 years ago

Thanks, Vicki.

Posted by Virginia Hepp - Mesquite NV REALTOR, Mesquite NV Homes and Neighborhoods - Search MLS (ERA - Mesquite NV Homes For Sale) over 9 years ago

Virginia, I so wish this had happened. I so wish. I hope you're doing well. I came by to see you since you've been such a stranger. Take care,

Later in the rain~Deb

Posted by Deb Brooks (Brooks Prime Properties Wichita Falls Texas) over 9 years ago

Deb - Me too.  That is a lot of money around here and would have made a big difference.  The 8000 tax credit will help though.

Posted by Virginia Hepp - Mesquite NV REALTOR, Mesquite NV Homes and Neighborhoods - Search MLS (ERA - Mesquite NV Homes For Sale) over 9 years ago

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