More answers to new-buyer-credit questions
Here's what Eileen Ambrose says about the $8,000 tax credit for first-time homebuyers:
Will those who qualify receive a check after they've filed their taxes?This is the best kind of credit: a "refundable" one.
First, the credit will reduce your bottom line tax bill. If the credit is larger than your tax bill - or you don't owe any taxes - you will get any excess credit in the form of a refund.
She also answers questions about whether you can claim both the $7,500 and $8,000 credit (no), whether you can use the credit if you're buying into a retirement community and what "first-time homebuyer" actually means. (Not "never bought before," as it happens.)
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Comments
This is a step in the right direction. I'm glad they made it so it's a true tax credit instead of something that needs to be paid back. Now all we need is for housing prices to come down to historical norms. Things are still highly inflated in the suburbs compared to where prices should be.
Posted by: BigDragon | February 17, 2009 11:20 AM
As BigDragon notes: "Now all we need is for housing prices to come down to historical norms."
As a buyer, I'd rather have a real $30,000 reduction in the price than than an illusory manipulation to the calculation of affordability.
Posted by: MrRational | February 17, 2009 1:15 PM
http://blogs.wsj.com/developments/2009/02/13/home-prices-in-northern-virginia-nearing-bottom-dc-has-farther-to-fall/
good article comparing MD vs. VA
Posted by: Interesting | February 17, 2009 1:27 PM
Get the Specifics on the Tax Credit Here:
http://www.realtor.org/wps/wcm/connect/b32db1004d05f6338052c5fd73e5610f/government_affairs_tax_credit_chart_021308.pdf?MOD=AJPERES&CACHEID=b32db1004d05f6338052c5fd73e5610f
If you have never owned a property-or-haven't in the last 3 years and make less than $75k as a single, or $150k as a joint filer and it is your primary residence you qualify. You will get a tax refund if you have over paid.
There are no specifics on speading it out over two years as others have mentioned here. It took me 45 minutes to find it.
C'mon Wonk - I read the thing.
Posted by: Dunn | February 18, 2009 1:44 PM