Lucky for you (and me!) Jay Thompson, a top notch real estate colleague from Arizona, wrote a great article of explanation regarding this revision, with good links as well. Jay is the Phoenix Real Estate Guy and his post is here.
The Tax Credit as initially devised, was a loan but now it seems as long as you own the home for x number of years, you no longer have to pay it back. Also, you can’t use it when you purchase, but you get the credit when you file your taxes. You have to purchase a home within a one year parameter (at least that is how it stands now), but they have made some adjustments to the repayment provision.
Here is one of the changes as outlined in the AP story:
The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break for the purchase of new homes only.
I would caution you to keep up with any other changes that could occur, but I admit to being happier with this version, as it stands today. Kudos to Jay for his in depth analysis.
I would also advise you to consult with your mortgage lender and/or financial advisor and/or lawyer when applying for the tax break.
So you might qualify for a $140,000 home and that part won’t change because of the tax break, but, isn’t it nice to know you could get some tax relief for that $140k purchase!
I’ll keep updating as things progress. When you read Jay’s post in it’s entirety, you can get links to the actual Amendment.
Peace Out – 3C
2 responses so far ↓
1 Linda Davis // Feb 6, 2009 at 8:08 pm
I was just thinking about posting on the subject. I think I’ll link to Jay too. Why reinvent the wheel when someone like Jay did it all for us? Kudos to both of you!
2 Carole Cohen // Feb 6, 2009 at 8:29 pm
Exactly my thought! Especially since there were so many ins and outs to the new changes lol
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