Nobody has the answer? (re: $15K look back period)

[moneytree]

It appears to us that we do qualify for the $15K tax credit. We closed on our house Nov. 08. What is the gov't going to do, but tell 'Jack and Jill' that you can only have $7500, and pay it back....and then turn around and offer $15K and not have to pay it back. Many more would be giving our gov't the finger! There would be an uproar!

It's clearly stated (that again, if this goes thru) that you can include the $15K in your 2008 taxes. We are ALL just filing our taxes now. No where are they stating that it would be for people buying homes from Jan 1 2009 and for 1 yr. In this article I am attaching, it explains that the $15K can be claimed if the house was purchased DURING the TAXABLE year. (note, here it says nothing about a YEAR, like all articles say, so wouldn't that mean that they ARE going back to Apr 08and then ending this in Sept 09???)

[moneytree]

the article... (explains would start immediately & be retroactive?!)

WASHINGTON - The U.S. Senate today unanimously approved an amendment by U.S. Senator Johnny Isakson, R-Ga., to stimulate the nation's declining housing market by offering a $15,000 tax credit to individuals who purchase a home in the next year.

"It is time to fix America's problem, not throw money at the symptoms. It is time to fix housing first. It is rare that we have a road map to success in times of difficulty, but this country has once before realized a housing crisis every bit as bad as the one we have today and economic troubles every bit as dangerous," Isakson said. "We have a pervasive housing problem, and we have a historical precedent that works. I am proud this Senate has joined together, learned from history and repeated a method that worked by adopting this amendment."

Specifically, Isakson's amendment to the pending economic stimulus bill would provide a direct tax credit to any homebuyer who purchases any home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislation's enactment, and the tax credit would not have to be repaid.

The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principal residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment.

(which would be immediate and since it's avail. for those within 1 yr of the enactment, then they better mean going back to Apr 08...and then as they state, end 9/09)

[moneytree]

Doesn't sound like they will retroact the $15K if it goes thru...

We found this web site:

http://www.fivecentnickel.com/2009/02/04/15000-homebuyer-tax-credit/#comments

[biotechsolution]

If I understand tax credit system like other tax credits.

What happens is you are able to deduct $15,000 off your income tax liability. So if you not paying $15,000 in taxl liability you aren't going to get back $15,000.

You are only going to get back what you pay in tax liability up to either the $7500 or $15000 credit.

I agree with a previous poster that if you are in a low income bracket that doesn't pay tax about the $7500 or $15000 level you won't get that full
amount back.

That's how tax credits work. That's why most people don't want them for health care, they don't really put any money in your pocket, just saves tax
liabillity.