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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
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Landloards and the 15K tax credit....
Seems like one group is not happy about the possible 15K tax credit. Landlords. Many feel that they will lose tenants and those who rely on tenants to supplement their income could now find themselves in foreclosure since they wouldnt be able to pay their mortgage. Hmmm never thought about that.
My goodness my head is spinning with all the angles of how this plan can or cannot work....
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Posted 2/6/09 9:53 AM  |
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Elbee
Zanzibar
Member since 5/05 10767 total posts
Name:
Me
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Re: Landloards and the 15K tax credit....
I think this sentiment is kind of stretching it a bit. (the landlords thoughts, not you) ....
I mean the tax credit isn't going to allow every single American to buy a house. There are billions of people who will NEVER be able to afford a home for one reason or another. There will ALWAYS be renters.
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| Posted 2/6/09 10:02 AM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
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Re: Landloards and the 15K tax credit....
Posted by Elbee
I think this sentiment is kind of stretching it a bit. (the landlords thoughts, not you) ....
I mean the tax credit isn't going to allow every single American to buy a house. There are billions of people who will NEVER be able to afford a home for one reason or another. There will ALWAYS be renters.
I agree that not everyone will run out and buy especially since it will require 5% down in order to even get the credit so that will eliminate people.
I just never thought of the landlord angle.
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| Posted 2/6/09 10:10 AM |
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babymakes3
Almost there!
Member since 7/06 7376 total posts
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Re: Landloards and the 15K tax credit....
I agree with Elbee.
Not every tenant will be able to qualify for a home. The banks are not going to loosen their credit standards like they did when this mess started.
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| Posted 2/6/09 10:43 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Landloards and the 15K tax credit....
Landlords should be happy. Or at least prospective landlords should.
I am looking for a second house to rent out and this 15k tax credit will help me purchase one.
Any existing landlords should think the same thing. They can add properties to their list and get a 15k tax credit.
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| Posted 2/6/09 10:48 AM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
Name:
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Re: Landloards and the 15K tax credit....
Posted by ave1024
Landlords should be happy. Or at least prospective landlords should.
I am looking for a second house to rent out and this 15k tax credit will help me purchase one.
Any existing landlords should think the same thing. They can add properties to their list and get a 15k tax credit.
I can see landlords who are not dependent on the income doing this...I am talking about those landlords that lost jobs and are thanking the heavens for rental income to keep them afloat. Apparently there are many states who have a high number of displaced renters The internet is a beautiful thing but when I look outside of NY, my goodness the story elevates to another level depending on state.
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| Posted 2/6/09 10:54 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Landloards and the 15K tax credit....
Posted by sometimesmommy
I can see landlords who are not dependent on the income doing this...I am talking about those landlords that lost jobs and are thanking the heavens for rental income to keep them afloat.
I think that's looking way too into it. I really don't see the rental market changing that drastically just because the government is giving out a 15k tax credit.
Also many people don't realize this is a 15k tax CREDIT. It's not a stimulus check.
Which means in order to get the full 15k, you need to have a 15k tax liability for that year. Since tax liability is determined by AGI, after factoring in all the deductions you can take like a joint standard deduction, or other deductions you have if you itemize, many people may not even get the full 15k because they wouldn't be liable for 15k in taxes that tax year.
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| Posted 2/6/09 11:08 AM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
Name:
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Re: Landloards and the 15K tax credit....
Posted by ave1024
Posted by sometimesmommy
I can see landlords who are not dependent on the income doing this...I am talking about those landlords that lost jobs and are thanking the heavens for rental income to keep them afloat.
I think that's looking way too into it. I really don't see the rental market changing that drastically just because the government is giving out a 15k tax credit.
Also many people don't realize this is a 15k tax CREDIT. It's not a stimulus check.
Which means in order to get the full 15k, you need to have a 15k tax liability for that year. Since tax liability is determined by AGI, after factoring in all the deductions you can take like a joint standard deduction, or other deductions you have if you itemize, many people may not even get the full 15k because they wouldn't be liable for 15k in taxes that tax year.
I think people are just scared of the unknown. I dont see it changing that drastically either but its something floating out there.
ITA about people understanding the difference btw a tax credit and a stimulus check.
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| Posted 2/6/09 11:35 AM |
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LightUpOurLife
Totally in love
Member since 8/06 12785 total posts
Name:
Bonnie-Jean
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Re: Landloards and the 15K tax credit....
In this economy, I see more and more people needing to rent since they are losing their homes. 
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| Posted 2/6/09 11:58 AM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
Name:
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Re: Landloards and the 15K tax credit....
Posted by BJandDan
In this economy, I see more and more people needing to rent since they are losing their homes.
Thats what I thought too but apparently its being complicated by factors that vary by state cause the ones who lose their homes have low credit scores and cant get apartments. Then you have landlords who are scared they will lose their renters who jump off the fence to buy. Its a cycle.....
Message edited 2/6/2009 12:17:37 PM.
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| Posted 2/6/09 12:17 PM |
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rkoenke
my little piggys
Member since 3/08 4315 total posts
Name:
rachel
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Re: Landloards and the 15K tax credit....
Posted by ave1024
Landlords should be happy. Or at least prospective landlords should.
I am looking for a second house to rent out and this 15k tax credit will help me purchase one.
Any existing landlords should think the same thing. They can add properties to their list and get a 15k tax credit.
The 15K isn't just for Primary residences?
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| Posted 2/6/09 1:19 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Landloards and the 15K tax credit....
Posted by rkoenke
The 15K isn't just for Primary residences?
There are ways around that.  Especially when you only own one investment property.
If a landlord has three of four properties, then yeah different story.
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| Posted 2/6/09 1:24 PM |
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rkoenke
my little piggys
Member since 3/08 4315 total posts
Name:
rachel
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Re: Landloards and the 15K tax credit....
Posted by ave1024
Posted by rkoenke
The 15K isn't just for Primary residences?
There are ways around that. Especially when you only own one investment property.
If a landlord has three of four properties, then yeah different story.
Gotcha!
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| Posted 2/6/09 1:46 PM |
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smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
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Re: Landloards and the 15K tax credit....
While some people will take advantage of the credit to buy a house, in this economy and the fear to lose a job, I think a lot of people will keep renting.
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| Posted 2/6/09 2:50 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Landloards and the 15K tax credit....
Posted by ave1024
Posted by rkoenke
The 15K isn't just for Primary residences?
There are ways around that. Especially when you only own one investment property.
If a landlord has three of four properties, then yeah different story.
Legal ways?
According to the press release, taxpayers could claim the credit on a 2008 federal income tax return. The limitations appear to be that the purchase must be of a principle residence, and the credit would have to be recaptured (read: reversed) if the home is sold within two years of purchase. In other words, the home cannot be a second home like a vacation house or an investment property that isn’t the taxpayer’s primary residence.
Source
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| Posted 2/6/09 2:57 PM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
Name:
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Re: Landloards and the 15K tax credit....
Posted by Kara
Posted by ave1024
Posted by rkoenke
The 15K isn't just for Primary residences?
There are ways around that. Especially when you only own one investment property.
If a landlord has three of four properties, then yeah different story.
Legal ways?
According to the press release, taxpayers could claim the credit on a 2008 federal income tax return. The limitations appear to be that the purchase must be of a principle residence, and the credit would have to be recaptured (read: reversed) if the home is sold within two years of purchase. In other words, the home cannot be a second home like a vacation house or an investment property that isn’t the taxpayer’s primary residence.
Source
People are out there rubbing their hands I am sure trying to figure out ways to beat the system
Message edited 2/6/2009 3:28:41 PM.
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| Posted 2/6/09 3:10 PM |
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itkocak
Member since 7/07 7639 total posts
Name:
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Re: Landloards and the 15K tax credit....
Message edited 11/23/2011 3:32:11 PM.
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| Posted 2/6/09 3:21 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Landloards and the 15K tax credit....
Posted by Kara
Posted by ave1024
Posted by rkoenke
The 15K isn't just for Primary residences?
There are ways around that. Especially when you only own one investment property.
If a landlord has three of four properties, then yeah different story.
Legal ways?
According to the press release, taxpayers could claim the credit on a 2008 federal income tax return. The limitations appear to be that the purchase must be of a principle residence, and the credit would have to be recaptured (read: reversed) if the home is sold within two years of purchase. In other words, the home cannot be a second home like a vacation house or an investment property that isn’t the taxpayer’s primary residence.
Source
Sure there are legal ways.
Who's to say the person can't purchase the second house and declare his new as the primary residence. He would still get the 15k and rental income as well.
Message edited 2/6/2009 4:47:28 PM.
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| Posted 2/6/09 4:47 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Landloards and the 15K tax credit....
Posted by ave1024
Posted by Kara
Posted by ave1024
Posted by rkoenke
The 15K isn't just for Primary residences?
There are ways around that. Especially when you only own one investment property.
If a landlord has three of four properties, then yeah different story.
Legal ways?
According to the press release, taxpayers could claim the credit on a 2008 federal income tax return. The limitations appear to be that the purchase must be of a principle residence, and the credit would have to be recaptured (read: reversed) if the home is sold within two years of purchase. In other words, the home cannot be a second home like a vacation house or an investment property that isn’t the taxpayer’s primary residence.
Source
Sure there are legal ways.
Who's to say the person can't purchase the second house and declare his new as the primary residence. He would still get the 15k and rental income as well.
Only if he's collecting the rental income on his FIRST house, not the one he just purchased in 2009. You actually have to live in your primary residence.
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| Posted 2/6/09 4:54 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Landloards and the 15K tax credit....
Posted by Kara
Only if he's collecting the rental income on his FIRST house, not the one he just purchased in 2009. You actually have to live in your primary residence.
And like I said, it's not very difficult for a married couple to establish a primary residence for each house.
Back to my original point... this is not going to bother landlords one bit.
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| Posted 2/6/09 5:03 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Landloards and the 15K tax credit....
Posted by ave1024
Posted by Kara
Only if he's collecting the rental income on his FIRST house, not the one he just purchased in 2009. You actually have to live in your primary residence.
And like I said, it's not very difficult for a married couple to establish a primary residence for each house.
Legally, you can only do that if one of you lives in each house. If you're both living in house #1 and collecting rent from the house you bought in 2009, then the 2009 home is not your primary residence. Declaring it as such would not be legal. You can sugar coat it all you want, that doesn't change the law.
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| Posted 2/6/09 5:08 PM |
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itkocak
Member since 7/07 7639 total posts
Name:
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Re: Landloards and the 15K tax credit....
Message edited 11/23/2011 3:32:28 PM.
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| Posted 2/6/09 5:11 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Landloards and the 15K tax credit....
Posted by Kara
Legally, you can only do that if one of you lives in each house. If you're both living in house #1 and collecting rent from the house you bought in 2009, then the 2009 home is not your primary residence. Declaring it as such would not be legal. You can sugar coat it all you want, that doesn't change the law.
And legally... it isn't very difficult for a husband and wife couple to legally have two separate primary residences.
But of course that would be up to a CPA to figure that out.
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| Posted 2/6/09 5:22 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Landloards and the 15K tax credit....
Posted by imthekevinofcindyandkevin
Posted by Kara
Posted by ave1024
Posted by rkoenke
The 15K isn't just for Primary residences?
There are ways around that. Especially when you only own one investment property.
If a landlord has three of four properties, then yeah different story.
Legal ways?
According to the press release, taxpayers could claim the credit on a 2008 federal income tax return. The limitations appear to be that the purchase must be of a principle residence, and the credit would have to be recaptured (read: reversed) if the home is sold within two years of purchase. In other words, the home cannot be a second home like a vacation house or an investment property that isn’t the taxpayer’s primary residence.
Source
yeah and this is how things get cluster flucked and puts us in the position we're in. People think it's okay to scam the government, they won't miss the money blah blah blah. Well you all should be in an uproar when you hear some one contemplating screwing the system because we are all paying for it now.
Oh please. Lay off the soapbox.
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| Posted 2/6/09 5:29 PM |
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itkocak
Member since 7/07 7639 total posts
Name:
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Re: Landloards and the 15K tax credit....
Message edited 11/23/2011 3:33:00 PM.
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| Posted 2/6/09 5:34 PM |
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