Has Anyone Heard about the Home Credit for owners under 5 Years?

I can't find anything online about it. Does someone have the information. I just heard it this morning on channel 12 News.

Re: Has Anyone Heard about the Home Credit for owners under 5 Years?

It is for home purchasers that are "moving up" from their previous residence. you had to have lived in your previous home for 5 years to qualify.

Re: Has Anyone Heard about the Home Credit for owners under 5 Years?

http://news.yahoo.com/s/ap/us_homebuyers_tax_credit

Congress giving homebuyers a $6,500 tax break

WASHINGTON – Buying a home is about to get cheaper for a whole new crop of homebuyers — $6,500 cheaper.

First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the Senate voted Wednesday to extend and expand the tax credit to include many buyers who already own homes. The House could vote on the bill as early as Thursday.

Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn't owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.

"This is probably the last extension," said Sen. Johnny Isakson, R-Ga., a former real estate executive who championed the credits.

The homebuyers tax credit is one of two tax breaks totaling more than $21 billion that the Senate included in a bill extending unemployment benefits for those without a job for more than a year. The other would let companies now losing money recoup taxes they paid on profits earned in the previous five years.

"We are still in a world of economic hurt, and Congress must continue to act boldly and creatively," said Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee. "With the right mix of tax breaks and investments we will get through this recession and get folks working again."

The real estate industry has been pushing to extend and expand the housing tax credit. About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.

Extending and expanding the tax credit for homebuyers is projected to cost the government about $10.8 billion in lost taxes. While the measure passed the Senate by a 98-0 vote, Sen. Kit Bond, R-Mo., questioned its efficiency in stimulating home sales.

"For the vast majority of cases, the homebuyer tax credit amounted to a free gift since it did not affect their decision to purchase a home," Bond said. "And for the small minority of buyers whose decision was directly caused by the credit, this raises the question of whether we are subsidizing buyers who may not have been able to afford buying a home in the first place."

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.

The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.

Expanding the tax credit for money-losing companies is projected to cost $10.4 billion.

The business tax break would allow money-losing companies to use current losses to offset taxable profits earned in the previous five years, giving them refunds of taxes paid in those years. Under current law, businesses with annual gross receipts of more than $15 million can claim losses back only two years.

The tax break would help industries suffering losses in 2008 or 2009, including retailers, homebuilders and newspapers. Congress included a scaled-back version of the tax break — for companies with revenues of $15 million or less — in the economic recovery package enacted in February. The new tax break would be available to companies of any size, providing a quick source of cash.

The U.S Chamber of Commerce has been a big backer of the tax break for money-losing companies.

"It frees up capital that they can use to maintain jobs and potentially even hire new people as the economy returns," said Caroline Harris, senior tax counsel for the U.S. Chamber of Commerce.

The tax breaks would be paid for largely by delaying a tax break for multinational companies that pay foreign taxes. It was passed in 2004 and originally was to have taken effect this year, but would now be delayed until 2018.

___

The bill is H.R. 3548.

Re: Has Anyone Heard about the Home Credit for owners under 5 Years?

Thanks ladies. I understand. Oh well we will not get this. I knew it was too good to be true.

Re: Has Anyone Heard about the Home Credit for owners under 5 Years?

I wish they would extend it until next year for everyone. I still will not be ready to buy until at least next november. 5 months is not that long and can go fast, especially for house hunting. Oh well! One day maybe we will own a house, its just not in our budget right now especially with DD coming soon!

Re: Has Anyone Heard about the Home Credit for owners under 5 Years?

I don't understand the whole 5yr thing for people moving up. Fine you have to have owned your house for more than 5 years.

But what about people who bought a house and then sold it after 3 years and are currently renting?

Do they have to rent for 2 years before they can be eligable? That's a little ridiculous.

Re: Has Anyone Heard about the Home Credit for owners under 5 Years?

Re: Has Anyone Heard about the Home Credit for owners under 5 Years?

Re: Has Anyone Heard about the Home Credit for owners under 5 Years?

Re: Has Anyone Heard about the Home Credit for owners under 5 Years?

my husband and I qualify!! :)

now what do we do? Wait til our 2009 taxes or amend 2008?

Re: Has Anyone Heard about the Home Credit for owners under 5 Years?

I think I might be having a brain fart....

DH has owned his home for over 5 years but, we recently refied and put my name on it too so would that disqualify us?

Re: Has Anyone Heard about the Home Credit for owners under 5 Years?

Re: Has Anyone Heard about the Home Credit for owners under 5 Years?

And there is the group of us that got the credit as a loan I mean

I am grateful for that but still!!!!!!

Re: Has Anyone Heard about the Home Credit for owners under 5 Years?

No,it's for a new home.

It states on IRS.GOV:

For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.


So, you would have had to sold your primary house and purchased a replacement.

Message edited 11/10/2009 8:07:31 PM.

Re: Has Anyone Heard about the Home Credit for owners under 5 Years?

I am soooo confused.

In Feb we will own this house 5 years. Before that, we rented. Are we entitled to this?

Re: Has Anyone Heard about the Home Credit for owners under 5 Years?

No its only if you are going to buy a new house.....Its not a tax credit on your existing house. So if you decide to buy a new house in feb then you'd be able to get the credit.

Re: Has Anyone Heard about the Home Credit for owners under 5 Years?