I propose a tax credit of up to $5,000 for homeowners who refinance and lose that much money

[jsamuel]

from the (assessed) value of the house. If you loose less than $5,000, then you would get that much back in a tax rebate.

Do you think this would help the market level itself out by bringing values back to where they should be?

[flvegan]

1. You mean "lose" as in a diminishment in the assessed value of the property

at the time of refinance?

[jsamuel]

3. yes

sorry if that wasn't clear

[flvegan]

4. It's an unrealized loss unless the person sells.

The only way this tax break would be effective is some sort of deduction on an actual loss in value of the property, or "depreciation".

IOW, if you have this unrealized loss at the time of a refi and get the suggested tax benefit, then wouldn't it only be proper to give it back if you sell the property in a number of years and the property value readjusts to the positive (gain)?

[jsamuel]

5. good point

[Oregone]

2. or credit closing costs on a refi

[northernlights]

6. you're a bit behind the times

The stimulus plan includes a $7500 tax break for new home buyers. One of the 2 *good* ideas from the rethugs is to double it to $15,000 and broaden it to include *all* new mortgages, including refinancing.

[GoesTo11]

7. No way.

At first, people were talking about putting stimulus money into productive directions - new energy tech, train system, upgrading infrastructure. Now it's all about tax cut for this bailout for that. That's all just reallocation of wealth, generally from lower to higher.