What – $15000 Tax Credit Buying a Home A Reality? The Mortgage Bankers Association wants Congress to pass a recently submitted bill by Senator John Isakson called the Homebuyer Tax Credit Act of 2009. If this bill passes in its current form it would extend and broaden the reach of the first time home buyer tax credit. The current home buyers tax credit is $8000 which is up from $7500.
Key Components of the $15,000 Home Buyer Tax Credit Act of 2009
- Eliminate the income caps of $75000 and $150,000 that the current American Recovery and Reinvestment Act of 2009.
- Expand the home buyer tax credit from $8,000 to $15,000.
- Open the home buyer tax credit to any home buyer, not just first time home buyers as the current home purchase tax credit stipulates.
- Extend the time frame that the tax credit is in effect to somewhere near the end of 2010 depending on when the bill is passed (if it gets passed). The bill suggests that it be in effect for 1 year from its approval into law. The current first time home buyer tax credit runs out on November 30, 2009.
Still to be determined is whether the tax credit will be allowed to be given to the home buyer at the time when they buy their home. Many of the bills supporters suggest that home buyers need to get their hands on their tax credit at the time of their mortgage closing to ensure that the tax credit will have the maximum impact on the housing and economic recovery.
As it stands now, the home buyers tax credit is not collectable until tax time in 2010, long after the time has ended when home buyers can qualify to receive their tax credit by purchasing a house.
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