Wow ! A Republican actually does something for the little person !!

[Laura PourMeADrink]

Amazing..if the recovery stimulus bill passes, you will be able to get an above the line
direct tax credit of up to $15,000 and it doesn't have to be repaid ?????



http://isakson.senate.gov/press/2009/020409housing.htm

<snip>

Specifically, Isakson’s amendment to the pending economic stimulus bill would provide a direct tax credit to any homebuyer who purchases any home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislation’s enactment, and the tax credit would not have to be repaid.



The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principal residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment

[county worker]

1. Yea, the little guy with a 700 or better credit score and 20% down

[Johonny]

6. yeah I imagine investor class will make out well

Housing markets down, stocks and commodities are shaky. Why not start the land investing scheme all over again, snatching up land get a 15 K tax credit per purchase, might even get a nice 4 % rate if the rethug plans go well. You too might get to live a vassal on some rich land barons fiefdom some day.

[Tennessee Gal]

13. It only applies to the purchase of a personal residence.

[Laura PourMeADrink]

7. Well here's $15,000 of the 20% down. Free.

[Tennessee Gal]

14. No, it is up to a $15,000 tax credit depending on the price of the home.

[Laura PourMeADrink]

16. right. didn't think there was even a home out there for less than $150k

[gratuitous]

2. Wow! ANY homebuyer who purchases ANY home!

Oh wait; what the lede giveth, the body of the story taketh away. Have to buy within one year. Must be a principal residence. Have to hold it for two years. Claim the credit on 2008 tax return, that is, the one you're buying now.

So, who would qualify? :shrug:

[Laura PourMeADrink]

10. huh? I don't see anything unreasonable here. the 2008

tax return credit is good - if you are buying now.

[gratuitous]

11. But the 2008 tax year is already closed

And for early filers, it would necessitate filing an amended return for 2008, or for late filers, closing on a property by April 15 or needing an extension. Or for a buyer who purchased some time later in 2009, it would be necessary to file an amended return. Since a person would be getting money back, it's worth it. It's not unreasonable per se, just a hassle. Might have been more efficient to offer it for the 2009 tax year.

But it's not like a Republican proposal is going to get much traction in Congress anyway.

[Laura PourMeADrink]

15. I assumed it was both. A 2009 tax year plan AND a kicker where

you could do it for 2008 too? Did I read it wrong?

[Laura PourMeADrink]

20. word has it (no link yet) that you can choose to claim the credit in 08 or

09. It's a one time deal. All the details of this credit have yet to be worked out - but will have to be for the final
recovery package.

[gratuitous]

21. I probably should have read the whole thing

Instead of just the excerpt, but Republican writing always gives me a pounding headache for some reason. I often need to replace my keyboard, too. Prolly just a coincidence, I'm sure.

But based on the last several years, I wouldn't put it past a Republican to write a bill for a tax credit that wound up benefiting a near relative and a couple of other incidental people, purposely writing it so that it sounded a lot better and more inclusive in their press release than it actually worked in the real world.

[Laura PourMeADrink]

22. If it makes you feel any better - the provision passed unanimously

dems and reps. Hopefully the dems would have sniffed out something bad.

[sinkingfeeling]

3. I think that this is a stupid amendment that will encourage those with 'upside down' mortgages to

walk away from their current home and take a $15K credit on another.

[sandnsea]

5. You wouldn't qualify

unless you manipulated your loan application - which is part of what got us into this mess in the first place.

[Laura PourMeADrink]

9. How does that work? If they walk away from their upside down

mortgage how would they get a new mortgage on another home?

[sinkingfeeling]

12. One must plan to do it. A simple search on Google will give you over 1.4 million hits.

I used these in the search 'walking away mortgages while buying another home'. I've been reading about this trend for about a year, wondering about the mind set of these people. Somewhere I read the rate of this type of activity by state, but can't find it right now.

Here's one guy's story: http://saveinvestretire.com/walk-away-from-your-home/

[Laura PourMeADrink]

18. interesting. I would think that the timing would be tricky. To get

the second house, you would have to have the capacity to pay the first and the second mortgage together - since you still owed the first mortgage at the time of application for the second. Plus you have to get the second mortgage before your credit rating goes south.

Didn't know you could be in default for an entire year before you actually got kicked out. That doesn't sound right to me.

[RubyDuby in GA]

4. Trust me. Isakson will never do anything for the little guy. I'm sure he's being

amply rewarded by his corporate masters for trying to look like he is.

[Laura PourMeADrink]

8. well however he and others might be rewarded - this is a great

thing for homebuyers!

[Greyhound]

17. Don't be fooled!

Tax credits are simply republicode for giving more away to those that are already rich.

Direct infusion of capital (loans/grants) can help us little guys.

Loan guarantees are more corporate welfare to the financial industry.

We need to pump up small businesses and encourage start-ups while taxing large businesses and eliminating the off-shoring/out-sourcing loopholes. That is what will help little guys.

[Laura PourMeADrink]

19. Don't worry. I think we are so automatically suspicious we don't recognize

something that's good when we see it. This IS good for anyone who can afford to buy a house. You are literally
getting a $15,000 tax credit. Sure, it doesn't help the people who are in trouble nor the ones who can't afford
a home (hope there's relief in sight for them). But for much of America, who are working and can afford a home -- this is a good deal

[marketcrazy1]

23. they put the cost at 19 billion

for this program, that means they believe about 1.9 million home buyers will take advantage of this, affecting about 25 to 30 percent of new home sales this year..

[Laura PourMeADrink]

24. wow. amazing. what I don't understand is that Chris Mathews and

repukes were talking and not once did they mention this provision last night. Also,
they kept saying there was Nothing in the bill to spur housing. I don't get it.

Obama doesn't mention it either - guess because it reduces tax revenues - which he
seems to be very much against.