Home Tax Credit

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Originally Posted by superman_101680

True. But who is drawing the lines? Why not 3 years or 10...why 5?

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I'm not saying I support it. I think it would have been fine just to keep the new homebuyer's tax credit. But you're right, why draw the line at 5? Why not tier it for a number of years up to, say, 6-7, so that people don't have to wait until THE day after their mortgage turns 5 years old to be eligible for the tax credit.

But the devil's advocate's sake: let's say that the government caves in to people asking "WHY LIMIT IT AT 5 YEARS?" So they say that you may be eligible under certain discretionary situations up to 6 months before the 5 year date. Then people ask "WHY NOT 4 YEARS?!" And so on. And what about the conditions that fall under reviewable discretion? What would those be? Who decides?

And we wonder why government is always looked down upon as inefficient.

Well, sounds like you can only pull this off within about a 6 month window. Not sure that there's much room for "over and over" again abuse.

Doesn't matter for me personally - there's about a 1% chance of me utilizing it. I'm a bit peeved, however, about the auto credit. I did get cut off on that one (bought too soon)

Thread title says Obama passed the tax credit. This is not possible unless this was an executive order. Thread title should be "Congress Passes Home Tax Credit".

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Originally Posted by AirWalke

I'm not saying I support it. I think it would have been fine just to keep the new homebuyer's tax credit. But you're right, why draw the line at 5? Why not tier it for a number of years up to, say, 6-7, so that people don't have to wait until THE day after their mortgage turns 5 years old to be eligible for the tax credit.

But the devil's advocate's sake: let's say that the government caves in to people asking "WHY LIMIT IT AT 5 YEARS?" So they say that you may be eligible under certain discretionary situations up to 6 months before the 5 year date. Then people ask "WHY NOT 4 YEARS?!" And so on. And what about the conditions that fall under reviewable discretion? What would those be? Who decides?

And we wonder why government is always looked down upon as inefficient.

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Why not just say 8k for new purchases and 5k for everybody else? I would be really tempted to move with a 5k tax credit and that pumps up the housing market like they want.

The most efficient way would be to not screw anybody and not offer the stupid credit.

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Originally Posted by abcguyks

Thread title says Obama passed the tax credit. This is not possible unless this was an executive order. Thread title should be "Congress Passes Home Tax Credit".

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Or "Obama Signs Home Tax Credit Bill"

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Originally Posted by DaddyMac

Yeah - I wonder what the purpose of the >5 is?

And little side note: None of this applies to family transactions. Almost certainly a good rule. But sucks when you are legit in purpose.

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I think its so people with a lot of money who are out flipping houses don't do it just for the tax credit.

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Originally Posted by CloneIce

I think its so people with a lot of money who are out flipping houses don't do it just for the tax credit.

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ding ding ding

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Originally Posted by BryceC

Why not just say 8k for new purchases and 5k for everybody else? I would be really tempted to move with a 5k tax credit and that pumps up the housing market like they want.

The most efficient way would be to not screw anybody and not offer the stupid credit.

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That wouldn't be much help to the housing industry... and that is the point of this, to boost the economy. I also don't understand how you think anyone is getting screwed in this deal.

I don't think the idea is for the government to give 5K tax credits to anyone out there who is just flipping a house. Would get a whole lot more spendy for the gov't if anyone buying a house is eligible for the tax credit, thats why it is restricted to new homebuyers and peple who have lived in their home for awhile and are moving on.

I think this is a balony progam. Huge waste of money and you're not getting any more people buying homes then in the past.

They'd be better off letting the housing market tank and then letting people buying the houses at lower prices. With this program your artificially keeping home values higher then they would be.

Long URL for easy to follow chart about the latest version: (pdf)
http://www.realtor.org/fedistrk.nsf/files/government_affairs_tax_credit_ext_chart_110409.pdf/$FILE/government_affairs_tax_credit_ext_chart_110409.pdf

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Originally Posted by jsb

I think the idea is to not reward someone who purposly bought a house that they couldn't afford and then they can profit off of it. If you've lived in a home for 5 years you have some equity built up.

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Not true with many of the "exotic" financing options that were available during the inflation of the bubble. 0% Down Interest Only Loan!

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Originally Posted by 2forISU

New home buyers $8000
People who lived in their homes for more then 5 years $5600

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I heard it was $6500.

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Originally Posted by Bobber

Huge waste of money and you're not getting any more people buying homes then in the past.

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That is simply incorrect (the 2nd part at least, the 1st is opinion and can't be judged at this point without more data).

A. The fact is, there was a huge jump in housing sales the last couple of months when people thought the tax credit was going to end. This was attributed mostly to the tax credit.

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Originally Posted by CloneIce

That is simply incorrect (the 2nd part at least, the 1st is opinion and can't be judged at this point without more data).

A. The fact is, there was a huge jump in housing sales the last couple of months when people thought the tax credit was going to end. This was attributed mostly to the tax credit.

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If you use the NAR numbers as to how many additional home sales this legislation has created, it has cost in the neighborhood of $43,000 per each sale it has generated.

This is terrible legislation. This is special interest legislation. The purpose of the legislation is to try to artificially bump up home prices. The markets will correct and are correcting in the markets that have had the steepest drops. This legislation will slow the market correction and if anything result in a longer time period for recovery.

The reason we had a recession is due to easy money and all the tax breaks the real estate sector has, which caused money to flood the real estate sector. If people were genuinely concerned about the long term, they would insist that the mortgage interest deduction be repealed, that the capital gains exclusion be repealed, and that special interest legislation like this tax credit never be considered.

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Originally Posted by alaskaguy

If you use the NAR numbers as to how many additional home sales this legislation has created, it has cost in the neighborhood of $43,000 per each sale it has generated.

This is terrible legislation. This is special interest legislation. The purpose of the legislation is to try to artificially bump up home prices. The markets will correct and are correcting in the markets that have had the steepest drops. This legislation will slow the market correction and if anything result in a longer time period for recovery.

The reason we had a recession is due to easy money and all the tax breaks the real estate sector has, which caused money to flood the real estate sector. If people were genuinely concerned about the long term, they would insist that the mortgage interest deduction be repealed, that the capital gains exclusion be repealed, and that special interest legislation like this tax credit never be considered.

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THIS:yes: