Comments on: The 15,000 Home Buying Tax Credit – What it is and isn’t

By: Land lots for sale California | Life | Contra Costa County CA Real Estate

Tue, 26 Jan 2010 22:29:30 +0000

[...] The 15000 Home Buying Tax Credit – What it is and isn't | Free … [...]

By: ben.kevan

ben.kevan — Thu, 13 Aug 2009 04:00:12 +0000

@Anon If you learned how to read you'll realize this was / is to discuss the legislation of the 15k bill that was on the verdict but eclipsed with the 8k credit.. Before you comment or try to bash someone.. learn what you are first talking about.. douche..

By: Anon

Anon — Mon, 03 Aug 2009 04:56:17 +0000

This guy is way off! Quit spreading rumors and check it out for real here http://www.federalhousingtaxcredit.com/2009/faq.php#11.

By: Jim

Jim — Thu, 16 Jul 2009 20:16:54 +0000

There seems to be rumors that this 15k tax credit is really money that is suppose to be paid back….like most of the stimulus money. Could you please clarify that this new 15k tax credit for purchasing a home is NOT any kind of a loan.

By: 15,000 Housing Credit Soon To Make a Comeback? | Ben Kevan's Blog

15,000 Housing Credit Soon To Make a Comeback? | Ben Kevan's Blog — Fri, 12 Jun 2009 23:28:46 +0000

[...] It’d pretty much be allot like the previously senate approved $15,000 credit that I wrote about here [...]

By: Erin

Erin — Wed, 04 Mar 2009 14:15:17 +0000

Question: I took out a loan in my name only to purchase a house (will close in April) I live with my husband – but he purchased that house before we were married. I also own another property that I rent out (it was never my principal residence) Would I qualify for the tax credit?

By: Jeff

Jeff — Sat, 21 Feb 2009 02:10:22 +0000

I researched the $7500 tax credit for you, and here’s a synopsis:

July 30, 2008 President Bush signed a major housing bill H.R. 3221 into law. As part of this housing bill, Congress created a new temporary tax credit to provide an incentive to first time home-owners
Amount of credit = 10% of cost of home, not to exceed $7500
Eligible properties are any single-family residence that will be used as a principal residence
Reduces income tax liability for the year of the purchase, and is claimed on the tax return for that year
Income limit = gross income of max $75,000/year or $150,000/year for a couple filing jointly
Purchasers may not have owned a principal residence in the three years prior to purchase
Purchases on or after April 9, 2008 through July 9, 2009

By: Billie

Billie — Thu, 19 Feb 2009 14:45:51 +0000

wasn’t there also a special refinancing option for those who wanted to keep current home? Available to all?

By: ben.kevan

ben.kevan — Thu, 19 Feb 2009 14:33:07 +0000

@Ray Cullinan The income limit for a married couple is $150,000. Are you over that limit? @Chris Chris, No you wouldn't qualify since you purchased from a family member. They would be able to see relationship from the seller / buyer transaction (I imagine they'll look quite closely at this to make sure it's not an open loophole) Also, be aware it is no longer a $15,000 housing credit, but an $8,000 housing credit.

By: Chris

Chris — Wed, 18 Feb 2009 18:16:43 +0000

I bought a house in June 2008. I bought the house off my step-grandfather. WOuld I qualify for the credit and how would they go about finding out they are related to me? Chris

By: Ray Cullinan

Ray Cullinan — Wed, 18 Feb 2009 14:22:07 +0000

What if I make more than the median income? My wife makes about 50,000 a year alone and I make much more. Is it possible to file separately and purchase the home in her name?

By: andrea

andrea — Tue, 17 Feb 2009 18:09:27 +0000

To amend the Internal Revenue Code of 1986 to provide a Federal income tax credit for certain home purchases. (Introduced in House)
HR 214 IH
111th CONGRESS
1st Session
H. R. 214
To amend the Internal Revenue Code of 1986 to provide a Federal income tax credit for certain home purchases.
IN THE HOUSE OF REPRESENTATIVES
January 6, 2009
Mr. WILSON of South Carolina introduced the following bill; which was referred to the Committee on Ways and Means
________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a Federal income tax credit for certain home purchases.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. CREDIT FOR CERTAIN HOME PURCHASES.
(a) Allowance of Credit- Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by inserting after section 25D the following new section:
`SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES.
`(a) Allowance of Credit-
`(1) IN GENERAL- In the case of an individual who is a purchaser of a qualified principal residence during the taxable year, there shall be allowed as a credit against the tax imposed by this chapter an amount equal to so much of the purchase price of the residence as does not exceed $15,000.
`(2) ALLOCATION OF CREDIT AMOUNT- The amount of the credit allowed under paragraph (1) shall be equally divided among the 3 taxable years beginning with the taxable year in which the purchase of the qualified principal residence is made.
`(b) Limitations-
`(1) DATE OF PURCHASE- The credit allowed under subsection (a) shall be allowed only with respect to purchases made–
`(A) after February 29, 2008, and
`(B) before March 1, 2009.
`(2) LIMITATION BASED ON AMOUNT OF TAX- In the case of a taxable year to which section 26(a)(2) does not apply, the credit allowed under subsection (a) for any taxable year shall not exceed the excess of–
`(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over
`(B) the sum of the credits allowable under this subpart (other than this section) for the taxable year.
`(3) ONE-TIME ONLY-
`(A) IN GENERAL- If a credit is allowed under this section in the case of any individual (and such individual’s spouse, if married) with respect to the purchase of any qualified principal residence, no credit shall be allowed under this section in any taxable year with respect to the purchase of any other qualified principal residence by such individual or a spouse of such individual.
`(B) JOINT PURCHASE- In the case of a purchase of a qualified principal residence by 2 or more unmarried individuals or by 2 married individuals filing separately, no credit shall be allowed under this section if a credit under this section has been allowed to any of such individuals in any taxable year with respect to the purchase of any other qualified principal residence.
`(c) Qualified Principal Residence-
`(1) IN GENERAL- For purposes of this section, the term `qualified principal residence’ means an eligible single-family residence that is purchased to be the principal residence of the purchaser.
`(2) ELIGIBLE SINGLE-FAMILY RESIDENCE-
`(A) IN GENERAL- For purposes of this subsection, the term `eligible single-family residence’ means a single-family structure that is–
`(i) a new previously unoccupied residence for which a building permit is issued and construction begins on or before September 1, 2007,
`(ii) an owner-occupied residence with respect to which the owner’s acquisition indebtedness (as defined in section 163(h)(3)(B), determined without regard to clause (ii) thereof) is in default on or before March 1, 2008, or
`(iii) a residence with respect to which a foreclosure event has taken place and which is owned by the mortgagor or the mortgagor’s agent.
`(B) CERTIFICATION- In the case of an eligible single-family residence described in subparagraph (A)(i), no credit shall be allowed under this section unless the purchaser submits a certification by the seller of such residence that such residence meets the requirements of such subparagraph.
`(d) Denial of Double Benefit- No credit shall be allowed under this section for any purchase for which a credit is allowed under section 1400C.
`(e) Special Rules-
`(1) JOINT PURCHASE-
`(A) MARRIED INDIVIDUALS FILING SEPARATELY- In the case of 2 married individuals filing separately, subsection (a) shall be applied to each such individual by substituting `$7,500′ for `$15,000′ in subsection (a)(1).
`(B) UNMARRIED INDIVIDUALS- If 2 or more individuals who are not married purchase a qualified principal residence, the amount of the credit allowed under subsection (a) shall be allocated among such individuals in such manner as the Secretary may prescribe, except that the total amount of the credits allowed to all such individuals shall not exceed $15,000.
`(2) PURCHASE- In defining the purchase of a qualified principal residence, rules similar to the rules of paragraphs (2) and (3) of section 1400C(e) (as in effect on the date of the enactment of this section) shall apply.
`(3) REPORTING REQUIREMENT- Rules similar to the rules of section 1400C(f) (as so in effect) shall apply.
`(f) Basis Adjustment- For purposes of this subtitle, if a credit is allowed under this section with respect to the purchase of any residence, the basis of such residence shall be reduced by the amount of the credit so allowed.’.
(b) Clerical Amendment- The table of sections for subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 25D the following new item:
`Sec. 25E. Credit for certain home purchases.’.
(c) Effective Date- The amendments made by this section shall apply to taxable years ending after February 29, 2008.

By: ben.kevan

ben.kevan — Sat, 14 Feb 2009 23:07:06 +0000

@Ramona

Ramona,

There is no longer a $15,000 credit, only $8,000 which has a income limitation of $75,000 for a single filer (it degrades at that point).

I’ll write more about it when signed in the next few days

By: Ramona

Ramona — Sat, 14 Feb 2009 21:14:09 +0000

Whoops, one too many zeros!

By: Ramona

Ramona — Sat, 14 Feb 2009 21:13:39 +0000

Did I read someplace that the proposed $15000 home credit was for homes costing at a minimum $75,0000? We looked at a foreclosure today that was only $73,800. I can’t seem to find it but I thought I read someplace that the house had to be at least $75,000 to qualify for the credit.
??

By: ben.kevan

ben.kevan — Wed, 11 Feb 2009 22:26:51 +0000

@Phil Not a problem. I hope the stimulus is just adding a clause for "First Time Home Buyers".

By: Phil

Phil — Wed, 11 Feb 2009 22:20:44 +0000

Sorry, just now saw your last post.

By: Phil

Phil — Wed, 11 Feb 2009 22:17:20 +0000

Hi Ben,

Thanks for the blog, this has been the most thorough explanation of the $15,000 version of the tax credit I have currently found.

My fiance and I are currently in the process of building our first home. Estimated closing date is the first week of June. I know with the original $7500 credit, if you bought in 2009 you could amend your 2008 return to receive the credit earlier.

I have read through several versions of the bill and thought I had read a version which would allow this for the proposed $15,000 credit. Have you seen this or am I imagining things (again)?

Not sure how exactly it would work, under this plan, since the credit is based off future taxable income and not the price of the home.

Thank you

By: ben.kevan

ben.kevan — Wed, 11 Feb 2009 21:51:08 +0000

I’m not going to comment on the 15k Housing credit because it seems as though it may get removed / shaved:

See the following from http://www.bloomberg.com

“Baucus said about 35 percent of the plan would be set aside for tax cuts and the remainder would be government spending. He said lawmakers agreed to “shave” a proposed $15,000 tax credit for homebuyers, though he didn’t provide specifics.”

By: Travis

Travis — Wed, 11 Feb 2009 20:59:08 +0000

Here’s a question I’m sure other people are curious about. Looks like this bill for the 15k credit is probably going to be in effect as soon as next Monday (President’s Day). I’m about a week away from closing on my first house and already have taken advantage of the $7500 tax credit. Will I also be able to take advantage of the 15k credit by withholding more on my W2’s in the coming year? This seems beneficial because in single and my taxes last year were nearly 12k.