RE: Stimulus $15,000 credit for buying a house- so I sell my house to my son and I buy his &

[AlinPA]

we end up with $30K.

[NMDemDist2]

1. yeah if you are greedy

but I hope not.

it's for 'first time' homebuyers IIRC

[jsamuel]

3. it is not limited to first time home buyers

for the senate version.

I think it should be for 1st timers. It seems like people could take huge advantage of it otherwise.

[Cash_thatswhatiwant]

33. ooo really??? its not for first time buyers?

hmm...

[Veritas_et_Aequitas]

4. Actually I think I read it will be for all homebuyers who buy a home within a certain time period.

[Blackhatjack]

5. The OP is correct for the Senate Version, You are right for the House Version n/t

[truedelphi]

6. I can only imagine the same Repugs who hated this stimulus package falling

All over each other as they attempt to sell each other their houses.

[terisan]

14. ....and creating the next housing bubble.

[AlinPA]

8. I looked for information and couldn't find any. I wouldn't do this, just used the scenario

with my son. Looks like there could be loopholes.

[Earth_First]

2. Minus closing costs, attorney fees, capital gains et. al

Sure you may walk out with a few bucks...

[GoesTo11]

7. OP's scheme avoids most of the costs.

This is a stupid use of stimulus money. Throwing handfuls of money on the street is dumb. How about investing our tax money in real useful things?

[Thrill]

9. I bet this is taken out of the bill

[Dawgs]

11. It should be taken out. The fucker that proposed (Isakson) it voted against the bill anyways.

It was always a stupid idea.

[Donnachaidh]

13. Johnny Isakson?

Yeah, he's a Georgia good ole boy and he is a frigging CROOK.

[Fire1]

28. I totally agree b/c if there is a 'loophole' to be found, those

fuckers will find it.

[Thrill]

36. Sounds like its going to be cut back

Baucus had said earlier that $35.5 billion to provide a $15,000 homebuyer tax credit, approved in the Senate last week, would be cut back. There was also pressure to reduce a Senate-passed tax break for new car buyers, according to Democratic officials, while a $40 billion reduction in aid to states appeared likely to stick.

A provision limiting compensation for top executives of companies receiving federal bailout assistance appeared likely to be dropped altogether because of an unanticipated $11 billion budget cost. The officials who disclosed details of the talks did so on condition of anonymity, saying they were not authorized to discuss them.

The White House weighed in strongly to try to resurrect funding for school construction eliminated during Senate dealmaking last week, a Democratic official said, but seemed resigned to limiting aid to the states for local school budgets to the $39 billion approved by the Senate on Tuesday by a 61-37 vote.

http://news.yahoo.com/s/ap/20090211/ap_on_go_co/congress_stimulus;_ylt=Apdpbp2vSBVQHLG3imw3FTOyFz4D

[peace13]

10. You have to live in the house.

So you would have to move, not just own the thing.

Edited to add This is not a $15,000 rebate. It is a decrease in your income that lowers your taxs. You subtract $15,000 from your income and pay tax on that amount. I believe that you can spread it out over several years but not sure on that one. For example if I make $50,000 and buy a house, when I do my Federal income tax I subtract $15,000 from $50,000 and pay income tax on $35,000 for that year. If I make $35,000 it may not make sense to use the entire $15,000 credit in one year due to tax brackets.

[AlinPA]

19. I didn't know you had to live in the house.

[tritsofme]

22. I thought this credit was fully refundable.

ie, you get the $15,000 after whatever your tax liability is.

[Winterblues]

12. Do you feel you will owe fifteen thousand in taxes?

If so then it may benefit you to do that. If you don't need the tax writeoff then it probablt won't. You don't get a fifteen thousand dollar check you know.

[Dr.Phool]

15. My thoughts exactly.

I've never paid $15,000 in taxes in a year. And I'm in my 50's, and have always had a decent paying union job, with lots of overtime.

More subsidy for rich fucks.

[johnnydrama]

20. but

You can take the deduction over a 2 year period. What % of people pay $7,500 in taxes? A lot!

[T Wolf]

16. Except that state taxes would probably eat up more than each $15,000. Don't you know that

we little people cannot game a system, no matter how it might seem.

If this goes through, you can bet there will be regs to prevent what you suggest - at least for those with homes worth less than a million.

[Phoenix-Risen]

17. Don't most states

base their income tax on your Federal AGI?

[dsc]

24. She or he is likely referring to sales taxes

Houses are subject to sales tax just like any other purchase.

[Phoenix-Risen]

37. I didn't know that

I'm only familiar with Arizona and Minnesota and there is no sales tax on home sales there.

[carlyhippy]

18. I am not a first-time homebuyer, do I get in on this?

Actually, my mortgage is about as much as a new luxury car, not a decked out one, probably a toned down one, and my interest is 5%, I don't know if I wanna give up my house..I think I am pretty set.

[Kansas Wyatt]

21. It benefits Developers who have over-built subdivisions....

That are losing value and aren't selling. They need to re-capture their market at a more profitable price, so REPUBLICANS are giving them help in the Jobs Bill.

[amborin]

30. exactly....and the bad version just benefits flippers and developers, the benign version

only gives the tax credit to first time buyers....

[lonestarnot]

23. Meh.

Mens rea. Scamming always causes problems. Surely someone thought about that :shrug:

[BlooInBloo]

26. Of course. The conclusions people leap to, without reading the exact wording...

... is a large part of how the subprime/ARM debacle happened in the first place.

Good to see that we've learned oh-so much.

[lonestarnot]

31. Does the op have it wrong here as I have not read it. There was a caller to Shadegg who was

all hot about it because she wanted to apparently make money off real estate.

[BlooInBloo]

32. Hell if I know, I haven't read it... Which is why I'm not making shit up...

about what's possible and not possible according to it.

[lonestarnot]

34. Word, but that caller was all drooling over it.

[BlooInBloo]

35. (shrug) Americans drool over all sortsa stupid shit.

[Wiley50]

25. `Could even swap back again too. wash-rinse-repeat

But you could pull that deal off half a dozen times in a year

and then share a cell in prison with your son for conspiracy to defraud the Govt

[8 track mind]

27. I would prefer $15000 credit to buy a new car.

I would be at the dealership instantly!

[amborin]

29. that's the version Krugman condemned...he says 15K to FIRST TIME buyers is benign