Economy · Real Estate

Economic Stimulus?

If you haven’t already heard, the feds are trying to generate home sales by offering tax credits to home buyers!

Currently, first time home buyers can get a Homebuyer Tax Credit  of up to $7500 if the home buying their primary residence and they close between April 9, 2008 and July 1, 2009.  Basically, this “credit” has to be paid back one payment a year, due at tax time.  It’s like a 0% interest loan.

But wait!!  A new tax credit has been proposal that would increase the credit to $15,000, remove the pay back feature on the credit and might extend it to all home buyers.  It is still not clear if the buyer must be a first time home buyer. 

There’s also talk of another provision to help all creditworthy homeowners refinance their mortgages at rates of 4.5 percent or lower.

And there’s talk of a proposed tax credit if you buy a new car.  (Detroit’s gotta love that!)

Stay tuned for the final rendition of this bill. 

Please consult a tax professional regarding all your tax matters.

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