Comments on: H.R. 3548 – Tax Credit Passes House, Senate – Next Stop, The President

By: Scott Schang

Scott Schang — Fri, 06 Nov 2009 03:26:22 +0000

Hi Tim,

The President should sign HR 3548 either tomorrow or early next week. Once he does I imagine shortly thereafter the final text of the law will be public. Let me get my hands on the final version before I answer that with any degree of accuracy. It seems like the way the bill reads now, you have to have been in your previous home for 5 years. It makes sense though that the criteria should read that if you have owned a principle residence for 5 years (even if it was multiple homes).

I’ll be sure to let you know in a few days when the final text is published. I’ll go through it like I did today and try to make heads or tails of it.

By: Tim Toy

Tim Toy — Fri, 06 Nov 2009 03:10:18 +0000

Ok here is my story.
I purchased a principal residence on 11/2001 then sold it 6/2004
I then purchased another principal resicence on 8/2005 sold it 1/2006
I then purchased another principal residence on 7/2006 then sold it 9/2007
Got divorced so I have been renting until now.

I know I don’t qualify for the 8K new buyers credit but what about the new $6500 credit?

By: Scott Schang

Scott Schang — Fri, 06 Nov 2009 00:48:02 +0000

Hi Mike,

I have to read the final text of the bill but I don’t believe you would qualify. The reason is that this expansion is not likely to be retroactive, which means you would have had to close escrow on your new home after the new law is in place, which it is not. The President is set to sign HR 3548 either tomorrow or early next week.

I will certainly post more details once the full text of the bill is released.

By: Mike Smith

Mike Smith — Fri, 06 Nov 2009 00:44:39 +0000

Hi Scott,
We sold in February of 2008 after living in the home for 10 plus years and then bought a new home in July of 2009. From what you have indicated above we fall within the other listed parameters…can we take advantage of the credit? Mike

By: Scott Schang

Scott Schang — Thu, 05 Nov 2009 20:09:43 +0000

John,

Personally, I don’t like the fact that the government is giving these types of tax credits period. The government is passing the buck to future generations with the tax income deficits that are being created with some of these programs. The homebuyer tax credit alone will cost tax payers 10 billion over the next six months.

Don’t be surprised when you hear that income taxes have to be raised for the greater good of the Country!

I hear ya though, how do they decide who gets how much and why? It’s pretty simple. Lobbyists. Who has the biggest pockets and the ears of the law makers wins.

By: Scott Schang

Scott Schang — Thu, 05 Nov 2009 20:02:57 +0000

Jayson, the way I understand the wording of the bill, I’m going to say Yes!

By: John Blenkush

John Blenkush — Thu, 05 Nov 2009 19:43:56 +0000

Not understanding this! $6500 for homeowners who have been in their homes for at least five years? Where is the stimulus in that? What about those of us who have had a house in the last three years (do not qualify as a first time homeowner) and now need to buy. Shouldn’t there be a helpful hand for us?

By: Jayson

Jayson — Thu, 05 Nov 2009 19:32:41 +0000

So to your example on $6500 credit. My scenario. I bought a home as my primary residence in 12/1/2003 then transfered the title to my parents 2/1/2009 since i had moved to California. Since I had filed taxes at that address 5 consecutive years before moving and still within the 8 years will I qualify on my new home purchase now for the $6500. I think that I might.

Thanks for all the great information you give us on this site all the time.
Much appreciated.
Jayson