“Negotiators all but eliminated the biggest tax cut for businesses, a provision that would let companies convert losses into tax refunds, Baucus said. He said the provision, which would have let companies claim an estimated $67.5 billion in tax refunds this year and next, was sacrificed to help keep the final package under $800 billion. A proposed $15,000 tax credit for homebuyers was reduced to $8,000, Baucus said.”
It’s not over yet, but all in the span of eight short hours we have gone from a $15,000 homebuyer tax credit, to a possible reduction of the credit, to a rumor of the credit being removed entirely, back to the credit having been reduced to $8,000.
…………………………………………………. EARLIER ORIGINAL POSTING …………………….
Here is an update on the bill that just passed the senate February 5, 2009. But the entire bill does need to go back to the House, and to be signed by the President. There could be many changes before this happens, or it might not pass at all. Nothing is yet certain. But the news of this is something to follow if you are someone who is thinking of buying a home as it is a bright piece of news for us in the Real Estate industry and it would help the housing crisis immensely as you can imagine.
Here are the main points:
*** Provide a direct tax credit to any home buyer who purchases any home
*** Amount of the tax credit would be $15,000., or 10 percent of the purchase price, whichever is less
*** Home purchases must be made within one year of the legislation’s enactment
*** The tax credit would not have to be repaid
*** The amendment would allow taxpayers to claim the credit on their 2008 income tax return
*** Only applicable on purchases of a principal residence (not second homes nor investments)
*** Recapture of the credit if the home is sold within two years of purchase date
*** New rules would sunset the current $7,500. housing tax credit on the date of enactment
*** Stay tuned and watch to see what the government does with this measure and how it may affect you.
If you are a buyer looking to buy a East Phoenix Arizona Valley home, call us, we can help you. We work the entire East Phoenix Arizona Valley and are experienced in working with foreclosures, short-sales, as well as “traditional” sales. Call us 480-201-3001.
(And be sure to check with your CPA or tax accountant about anything pretaining to taxes. )