New housing bill

[JoshinNC]

http://thomas.loc.gov/cgi-bin/query/C?c110:./temp/~c1106bRg2f

This is the crap the House has passed and the Prez has agreed to sign. Scroll down to Sec. 612 (pretty far down the page) to see the new "first time homebuyer" credit rules. It seems that almost every "first time homebuyer" will get a $7500 credit in the year of purchase. But wait, there's more! They have to recapture the credit if the house is sold in the first 15 years. 15 years! Nobody keeps a house for 15 years. And, if the recapture applies there's also what amounts to accrued interest of 6 2/3 percent PER YEAR.

These folks are OUT OF CONTROL!!!! Two new govt agencies, HUGE bailouts for homeowners and crazy a** new credits which are basically EIC for the middle class.

HELLLLLPPPPPPP! I told you guys a month ago, I'm movin' to Mexico (now it doesn't matter if Obama gets elected because we already have a socialist in the White House!).

OK, I'm done venting for tonight (but there's always tomorrow).

[David1980]

Haha, like anyone is really going to ask "Did you purchase a house in the last 15 years that you received a credit for and since sold that house?" on their client questionnaire...

[Jiggers]

Preparer Penalty

Haha, like anyone is really going to ask "Did you purchase a house in the last 15 years that you received a credit for and since sold that house?" on their client questionnaire...

And if you don't, preparer penalty time!

[Bees Knees]

This is good...

There are 7 new tax laws that have been passed since the release of the print copy of TheTaxBook last December that are currently posted on TheTaxAuthority updates page and WebCD. 2 more tax laws signed into law in June are scheduled to be posted soon. Several others including this one appear to be close to passing before the next edition of TTB can be printed. Most of these new tax laws affect 2007 tax returns, including the 2 that will be posted soon (can anyone say amended returns?). This does not count all of the new Revenue Rulings and Procedures that add their own bit of change to the law.

I agree, Congress is out of control. Both political parties seem to believe tax law should be a moving target that is in a state of constant change. But then, that is why we are in business. If taxes were as simple as paying sales tax, we would all be scrubbing toilets for a living.

[Snaggletooth]

Stagnant Housing Market

Haha, like anyone is really going to ask "Did you purchase a house in the last 15 years that you received a credit for and since sold that house?" on their client questionnaire...

If their objective is to boost the housing market, then why would they create reasons not to sell property by adding this 15 - year freeze?

Can anyone figure this thing out??

[JoshinNC]

Because Americans want INSTANT gratification

If their objective is to boost the housing market, then why would they create reasons not to sell property by adding this 15 - year freeze?

Can anyone figure this thing out??

But, hey, that's why they're in the boat they're in now anyway.

[OtisMozzetti]

What's in the bill at thomas.loc.gov

http://thomas.loc.gov/cgi-bin/query/...mp/~c1106bRg2f

This is the crap the House has passed and the Prez has agreed to sign. Scroll down to Sec. 612 (pretty far down the page) to see the new "first time homebuyer" credit rules. It seems that almost every "first time homebuyer" will get a $7500 credit in the year of purchase. But wait, there's more! They have to recapture the credit if the house is sold in the first 15 years. 15 years! Nobody keeps a house for 15 years. And, if the recapture applies there's also what amounts to accrued interest of 6 2/3 percent PER YEAR.

These folks are OUT OF CONTROL!!!! Two new govt agencies, HUGE bailouts for homeowners and crazy a** new credits which are basically EIC for the middle class.

...

I read the material in the thomas.loc.gov site concerning HR3221, including the latest Senate amendments.

The words used in the bill are "a credit against tax", which sounds to me like a NON-REFUNDABLE credit. Since there are income limits of $75K/150K(MFJ) with $20K phaseout range, it seems that the $8000 credit wouldn't be fully utilized (not that much tax to credit against) by many of the "first-time homebuyers". First-time homebuyer is defined this time as didn't own a home during the last THREE years.

In order for the thing to be an "EIC for the middle class", it might need to be a refundable credit, which it looks to me like it isn't.

I not long ago saw several folks who expected to get a large credit for buying a Prius, but who found out later that the nonrefundable credit was limited by the difference between their AMT tentative minimum tax and their regular tax as otherwise computed. I am quite certain that car salespersons and real estate sellers don't explain any of that to the prospective buyers.

[DaveO]

I generally oppose

All interference by government in the markets. Fannie and Freddie need to be dissolved not propped up. The top exec's cooked the books for years in order to get their bonus checks which are gone with them.

Most of this problem was created by the government making home ownership "affordable" to all. Even to those who couldn't afford a home. If government interference got us into this mess, how is more going to get us out? Adding another incomprehensible section to the tax code hardly seems a step in the right direction.

"I do not go to Washington to make laws, I go to repeal laws"
"I do not care to make government more efficient for I am to reduce its size"
Barry Goldwater

[Jiggers]

Tired of everyone else getting some.........

I am tired of everyone else getting some assistance.

I don't qualify for food stamps.
I don't qualify for medicare/medicade, I have to pay my own health insurance.
I don't need a new house.
I can't itemize as the standard deduction brackets have grown to such an amount that my remaining mortgage and taxes and charitable don't reach it.
I can't get that sales tax deduction on vehicle purposes, for the same reason as the previous one.
I don't get paid vacation days or sick days off, if I don't work I have no income coming in.

And on and on and on.

[travis bickle]

Have Congress use this bailout money

to widen all the sidewalks in the nation.

That way, the people that qualify will have a place to sleep and sell apples.

[JoshinNC]

I agree, Non-refundable

I read the material in the thomas.loc.gov site concerning HR3221, including the latest Senate amendments.

The words used in the bill are "a credit against tax", which sounds to me like a NON-REFUNDABLE credit. Since there are income limits of $75K/150K(MFJ) with $20K phaseout range, it seems that the $8000 credit wouldn't be fully utilized (not that much tax to credit against) by many of the "first-time homebuyers". First-time homebuyer is defined this time as didn't own a home during the last THREE years.

In order for the thing to be an "EIC for the middle class", it might need to be a refundable credit, which it looks to me like it isn't.

I not long ago saw several folks who expected to get a large credit for buying a Prius, but who found out later that the nonrefundable credit was limited by the difference between their AMT tentative minimum tax and their regular tax as otherwise computed. I am quite certain that car salespersons and real estate sellers don't explain any of that to the prospective buyers.

But it's still a "give away" in my opinion.