First, let me tell you my situation. My lease is up at the end of Feb, so by Feb I'm going to need a new house. This time, I'm looking to buy, rather than rent. I would like to get a home by 12/1 to get the $8,000 tax credit, but that would mean I'm paying double rent for 3 months. I know there is a new bill in congress to extend this program, but nothing has happened to it for a couple months, from what I hear. Anyone know more about the tax credit getting extended? I personally don't see it passing, since the economy is 'recovering' and the stock market is up significantly since March. But that's just my thought, anyone know anything more?
I think you should wait and bet on another tax credit down the pipeline.. our economy is still in shlt shape, and they will not extend that bill until near the deadline.. count on that.
Just as a heads up: 10% of the house price, 5% if you're single. (Up to 4k/8k) And be careful with the deadline. You have to close by then... which can be tricky sometimes. No idea about it being pushed back///new one.
take a month or two to fix up whatever house you are going to buy. i think by the time you are done setting up, your apartment lease will expire just in time.
This is wrong. It is 10% up to an $8,000 credit if you are single. You only get $4,000 if you are Married Filing Separate. Don't respond like that if you don't know the facts.
If there is a cancellation fee to end your lease early it may be better to pay it to take advantage of the tax credit.
I have a roommate right now, so Im only paying 650/mo. So, for 3 months, that's about $2k. So ill still net $6k.
I hope that they get rid of the income requirements if they renew it. I make too much too qualify, yet I still can't afford to buy a house in the area where I live, and am not old enough to have acquired a good amount of savings for a down payment. Go figure.
are you likely to move within 3 years? i think you have to live there for 3 years as the main resident to keep the $8k. if you move out, then you have to pay it back.
Do some research on the 1040x Amendment form and see if you can file the 2010 purchase against your 2009 taxes.
You really have to close by the last day of November, not ON 12/1. You should buy a house now, we bought ours for 40,000 less than it was appraised at. $$$
according to one article i read, there was a proposal to not only extend the credit, but increase it to $15,000. that was a few months ago, and i haven't heard anything one way or the other. i am going to take the sure thing 8,000 this year rather than risk getting nothing... at least you didn't buy one last year. $7,500 but you have to pay it back
More than likely it will be extended but I doubt they will announce it to far before the deadline.. There is also talk that it will be extended to all buyers not just first time and it will go up to 15K back... As somebody in real esate i defintely have my fingers crossed..
promising news... though it's not the $15,000 http://hosted.ap.org/dynamic/storie...EDIT?SITE=TXDAM&SECTION=HOME&TEMPLATE=DEFAULT
It kills me that we didn't get this because we bought our first house in 2006. I always just seem to miss out on stimulus packages. We have gone with the Cash for Clunkers, but my wife's old car gets too many miles per gallon. C'est la vie. I do seriously hope that this credit gets extended. I think it is necessary to keep the housing market from cratering, but it will also benefit us personally. With 2 kids now, we have outgrown our townhouse. We're hoping to sell it next summer, and it would be awesome if a first time buyer had extra incentive.
If its a Tax Credit...does that mean you don't pay taxes on $8,000? That means you actually only save your tax bracket...or about $2640 if your in a 33% bracket. So you'd compare the rent you pay against the $2640, not the whole $8,000. right?
It's below the line, not above. You don't subtract $8,000 from your adjust gross income. You calculate your taxes and then subtract $8,000. So if you were owed $500 in taxes originally, you'd get a refund of $8,500 after utilizing this credit. It works similar to the child tax credit. It's just worth a lot more.
