Was on Capitol Hill today and learned some pretty cool things that were passed last year or are in the works.

First, were you a first time homebuyer between April 8, 2008 and now (I.E. bought a home in 2008 and didn't own a home in 2005, 2006, or 2007)? Planning to buy one by July 1st, 2009?

You can qualify for a interest free tax refund of 10% of your homes worth or $7,500 (whichever is lower) when you fill out your income taxes this year. This money which was appropriated during the Housing Recovery Act will be repaid $500 a year in your income taxes starting in 2010 and will be paid off by 2024. I think you need to make less than $95k a year (or $150k a year per married couple). So you get a big ole check on top of your income tax refund. From what I can tell, no real limit on what you spend the money on.

http://www.irs.ustreas.gov/newsroom/article/0,,id=186831,00.html

Then, are you planning on buying a car soon?

Apparently there are 2 bills being debated on which will likely both pass. One will make your car loans tax deductible, much like your mortgage. A new car loan plus a new mortgage deductions could actually negate that $7500 loan the government is giving you for your new house you just bought. This isn't limited to American made vehicles either.

But the cooler bill is one where the government will buy up older cars at a better rate than you would get if you traded it in. This will encourage you to a) buy a new car and b) get rid of your old gas guzzler. It also keeps vehicles off the used car market, again pushing people to buy new cars. These two bills are expected to get passed soon - so if you are thinking of buying a new car, try and hold off a bit.

Actually a lady I work with brought up that first thing to me last week. She and her husband just bought their first home in October. They are immigrants from Bulgaria and have lived here for almost 20yrs. I think they're going to try for this and sock the money away or throw it at their principle. I'm not sure which she said they'd do.

I didn't know about the car one though. I just wonder how this is getting paid for. =\

Run the country further in debt to encourage individuals to also dig themselves deeper. Sweet.

Throwing it at the principle could be huge, since mortgage rates (4.5% minimum) are bigger than you could get in interest. That becomes a savings of nearly $5,000 over the course of the loan after you pay the government's tax rebate back. I'm kinda annoyed that I don't qualify since I bought in Feb '08.

Aauuuuugh! (imagine that with a Charlie Brown 'blockhead' exasperated intonation). For god's sake people, it's principAl, principles are those things that people throw out the window for the sake of expediency... ;)

Regards,
Nydia

I qualified for this and am actually paying off a ton of debt since I recieved well over the credit amt

Just make sure you talk to your employeer / HR and have them withhold an extra $500 out each year so you don't have to worry about it sneaking up on you in April. It'll work out to be less than $20 a paycheck.

Aauuuuugh! (imagine that with a Charlie Brown 'blockhead' exasperated intonation). For god's sake people, it's principAl, principles are those things that people throw out the window for the sake of expediency... ;)

Regards,
Nydia

spelling is one of those things I completely and utterly fail at. I don't mind your lashings however :D

Grammar and spelling Nazis should burn in the ninth level of hell, but that is another topic. I hate seeing clunker buyback programs.. Such great classic cars being smashed.. makes me sad.

Just make sure you talk to your employeer / HR and have them withhold an extra $500 out each year so you don't have to worry about it sneaking up on you in April. It'll work out to be less than $20 a paycheck.

I wont have to worry about the extra 500 for awhile the interest deduction etc from the house will cover it for awhile. When you have a family of 6 the deduction part is a little easier.

Grammar and spelling Nazis should burn in the ninth level of hell,
Thought that was the one they were reserving for Clintonistas? :devil

The car thing is cool. been trying to sell off my old Bronco for months now and a tax refund would be nice.

LOL..what will tax breaks matter if people have no income? The economy shrank by 3.8% it hasnt done that since 1982 when Reagan was president.

I think the politicians have actually fooled themselves with their own lies, thinking the answer to debt is more debt.

Every solution you see come from Washington is either based on consumer debt or deficit spending at this point. They're trying to put a fire out with gasoline.

the car deal sounds sweet ! I can get more than trade in for my Tahoe and pick up the Avalanche ive been looking at ! thou I still would think I can get more for the tahoe if I sell it personally. A tax incentive could possibly get me to pull the trigger.

the interest rates 4.5 are nice. I just refinced from 6.1 to 4.5 at 15 years instead of 30 and still lowered my house payment by 90 dollars. Refi are tax deductable as well :)

*Wonders if his V-8 2003 Dodge Dakota he is 1 year from paying off would qualify, and if it would be worth the hassle*

Only if I get more than $3600 back on the refund, it would seem.

Every solution you see come from Washington is either based on consumer debt or deficit spending at this point. They're trying to put a fire out with gasoline.

A lot of them know that, or should anyway, but you can't unspend money. When the only tool you have is a hammer ...

So this morning the Senate passed a revision to the original bill, doubling the limit (up to $15,000 from $7,500), extending the deadline to Dec 31st 2009, and ... here's the kicker ... it no longer has to be repaid. Its $15,000 free money to anyone who buys a new home except for me apparently :(

So this morning the Senate passed a revision to the original bill, doubling the limit (up to $15,000 from $7,500), extending the deadline to Dec 31st 2009, and ... here's the kicker ... it no longer has to be repaid. Its $15,000 free money to anyone who buys a new home except for me apparently :(

Well, geez, didn't you see the "except for Kelraz" clause?

Do you have a link to this Kelraz?

I'm looking to buy a home for the first time around the June-August time frame. When I get home from Iraq I will be debt free for the first time in years. What are the most important questions that I should ask when purchasing a home? Also, does anyone have any really good links for browsing homes in the South Florida area, Miami Dade? My surfing capabilities are a little slow here and I'm up to my eyeballs in firewalls. Thanks in advance!

:devil

I'm looking to buy a home for the first time around the June-August time frame. When I get home from Iraq I will be debt free for the first time in years. What are the most important questions that I should ask when purchasing a home? Also, does anyone have any really good links for browsing homes in the South Florida area, Miami Dade? My surfing capabilities are a little slow here and I'm up to my eyeballs in firewalls. Thanks in advance!

:devil


The most important thing is by ALL MEANS get the home inspected before you buy. The other is see how the realestate tax code is in the town, when can taxes be raised? Is it by vote, decree or only when a house is bought...this can either cost you or save you THOUSANDS of dollars in the coming years.


Also as I will state this for Osg....see how far away the closest mexican lives....

So this morning the Senate passed a revision to the original bill, doubling the limit (up to $15,000 from $7,500), extending the deadline to Dec 31st 2009, and ... here's the kicker ... it no longer has to be repaid. Its $15,000 free money to anyone who buys a new home except for me apparently :(
They did not revise the original bill what they did was start a new one for 2009 tax year. Here are the caveats.

The fine print of this newest tax break is that it will apply to anyone who purchases a new home between 1/1/2009 and 12/31/2009, or basically at any point during the 2009 calendar year. Additionally, it states that the economic stimulus tax credit would go into effect as a credit on the following year's tax return. That means that for someone buying a house in 2009, they would receive the credit on their 2010 tax returns. The final caveat to the tax break, is that it applies up to 10% of the value of the home, with the maximum amount being $15,000 total. That means that a $150,000 house would get the full credit, with houses costing less getting a sliding scale of the tax credit.

The most important thing is by ALL MEANS get the home inspected before you buy. The other is see how the realestate tax code is in the town, when can taxes be raised? Is it by vote, decree or only when a house is bought...this can either cost you or save you THOUSANDS of dollars in the coming years.


Also as I will state this for Osg....see how far away the closest mexican lives....

Good call.. If you see any brown folks go ask for their papers.

Even getting inspected doesn't always work best. I had mine inspected on THE DAY I went to move in I opened the garage door to find it flooded. The water heater went and the home warranty said it was pre-existing since the close took so long. I ended up not minding too much since I had already bought my awesome tankless heater(Would totally reccomend one). I was planning taking my time prepping the install but due to time constraints I ended up shelling out money for it.

Along the taxes line do some due dilligence and look up the taxes for the house before making an offer, otherwise it could come back to bite you. Especially in california with Mello Roos ets.

And, do a thorough walk through. Look into closets and corners, and do not be embarrassed to open cupboards and look at the back walls (for mice holes or other pests), if possible check attic, and definitely check basement for any signs of water leakage. You are talking a significant amount of money, and if the seller or real estate folks give you crap about how long you are taking, take a pass on that property.

Oh, and Trikki, you HAVE TO let us know when you are home so we can raise a glass to your safe return.

That goes for you, too, Lummus.

Only thing I would add is Knock on the nieghbors door. Dont be scared and ask questions. People will spill everything as to the care of the home the nieghborhood ect. I spent a couple hours drinking a bottle a of wine late in the evening watching the nieghborhood before I bought glad I did.

It gives you a good idea about the people around you and activities. Oh, Florida has a great market for a buyer, especially first time. Just be leary of the condos. There are soem definetly great deals to be had.

I spent a couple hours drinking a bottle a of wine late in the evening watching the nieghborhood before I bought glad I did.



Did you have it wrapped in a paper bag and did you have a cigarette but hanging out of your mouth?

I wouldn't have bought in that neighborhood, no one cared that there was some guy drinking a bottle of wine watching everything going on.

No smoking and brown bags, plastic cups. I parked in front of the house.