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.