$8K buyer tax credit extension possible

[Em]

$8K buyer tax credit extension possible

WASHINGTON ? Aug. 24, 2009 ? Bills to extend the maximum $8,000 tax credit for first-time homebuyers, which expires Nov. 30, are pending in both the U.S. House and the Senate.

Sen. Christopher J. Dodd, a Connecticut Democrat and chairman of the Senate Banking, Housing, and Urban Affairs Committee, is co-sponsor of a bill with Georgia Republican Sen. Johnny Isakson that would raise the credit amount to a maximum of $15,000.

Senate Majority Leader Harry M. Reid of Nevada favors an extension of the current credit. He was quoted by the Las Vegas Sun saying, ?It?s something we can get done.?

Odds are that the credit will be extended and broadened to cover all buyers next year, but the chances of the amount increasing aren?t as good, observers say.

Source: Washington Post Writers Group, Kenneth R. Harney (08/22/2009)

? Copyright 2009 INFORMATION, INC. Bethesda, MD (301) 215-4688

 

[gmarc]

Screw this socialistic handout country.we're a broke country giving out money we don't have.watch and learn as interest rates sky to 7-15% over the next 2-10 years as out debt balloons to $15 trillion and we can't make our interest payments and default. our country has changed forever and economic activity will be slow and recession like for years to come. we're another japan with a down to sideways stock mkt and economy for as far as the eye can see.if printing money to solve problems worked all country's would do it.i expect mass protests in the capital and mass non tax compliance in the years to come

 

[Matt J]

Screw this socialistic handout country.we're a broke country giving out money we don't have.watch and learn as interest rates sky to 7-15% over the next 2-10 years as out debt balloons to $15 trillion and we can't make our interest payments and default. our country has changed forever and economic activity will be slow and recession like for years to come. we're another japan with a down to sideways stock mkt and economy for as far as the eye can see.if printing money to solve problems worked all country's would do it.i expect mass protests in the capital and mass non tax compliance in the years to come

Yep that'll learn 'em.

 

[Miss Kitty]

Wonder how many young'ens have a new car from clunker cash parked in their new driveways and how many of them used the $8,000.00 + $4500.00 to buy a car out of their means? Oh, have mercy...my head hurts.

 

[Matt J]

MK the $8,000 is a tax credit, not cash. ;-)

 

[Miss Kitty]

MK the $8,000 is a tax credit, not cash. ;-)

...wtf is a tax credit?

 

[Matt J]

...wtf is a tax credit?

Ask Mr. Kitty, it might just cure your sleep issues. :funn:

 

[Smiling JOe]

I'm not an accountant, but my understanding is that a tax credit is a check for $8,000, not a deduction on your gross earnings.

 

[30ashopper]

I'm not an accountant, but my understanding is that a tax credit is a check for $8,000, not a deduction on your gross earnings.

Correct, it reduces your taxable income by an amount. So you don't have to pay taxes on 8K you normally would. The amount you save depends on your upper income tax bracket. 28% would be around $2300.00, 25% = $2000.00, 15% = $1200.00.

 

[Smiling JOe]

Thanks. The confusing part of it is that the Feds are allowing it to be used to apply toward the closing costs of the purchase, but the problem is that there isn't money to directly fund it. So, if a buyer can apply it toward the closing costs, the scenario is slightly different than a tax savings. It becomes a cash out of pocket savings.