It’s been pretty difficult to keep or make sense of the most recent mega-billion dollar stimulus proposal, but it’s now passed the Senate and expected to be signed into law by President O soon.
Home Buyer Tax Credit Modified
So it appears the temporary tax credit for first time home buyers will get bumped up from $7,500 to $8,000, and the provision requiring the tax credit to be repaid is gone. In other words, instead of it acting like an interest-free loan, it will act like a gift. A freebie. According to CNN
Temporary credit for home buyers: The bill increases the size of an existing temporary and refundable first-time home buyer credit to $8,000, up from $7,500. It also removes the requirement under current law that the credit be paid back if the buyer stays in the home for at least three years. And it would extend the credit’s expiration date to Dec. 1, 2009, from July 1. Those eligible for this credit must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009.
The full credit is available to those making $75,000 or less ($150,000 for joint filers). Estimated cost: $6.6 billion.
For better of worse there’s free real estate money on the table
At over 1,000 pages (yikes!), this stimulus bill is a hard one to swallow. Watching the same old politics unfold, reading about all the “pork”, the lack of transparency, honestly, who the heck knows what’s in the bill or how it will affect us. Hey, I’ve got a question. Where’s the $800 billion coming from? Just wondering.
I did a write up at the end of last year identifying 6 real estate mistakes for 2009. Missing out on freebies was #1:
When someone offers you something for nothing with no strings attached (and his name is Uncle Sam), please accept.
I wish I had made it #2 so I could bump it up to #1.
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