Realtors and Lenders Work to Get Advanced Homebuyer Tax Credit
As part of his efforts to stimulate the economy, President Barack Obama got Congress to pass a new homebuyer tax credit bill. Under the bill, home buyers can earn up to $ 8,000 in tax credits if they buy a home beginning January 1, 2009 and before December 1, 2009. However, unlike previous tax credits for home buyers, the credit does not have to be repaid at a later date.
Although there are income restrictions associated with the new tax credit, most individuals and couples will be eligible. Single taxpayers, for example, can earn up to $ 75,000 and still be eligible for the credit, while married couples can earn up to $ 150,000 and remain eligible. Also, the definition of a first-time home buyer is somewhat imprecise, and the IRS considers anyone who has not had a primary residence in the last three years as a first-time home buyer.
The amount of the credit is determined by calculating 10% of the purchase price of the home, with a credit limit of $ 8,000. However, the only downside to this new loan is that new home buyers must wait until they file their taxes next year before they can receive the money. But, if a coalition of Florida lenders and realtors has their way, new home buyers may be able to receive the funds from the tax credit up front to use toward a down payment on the homes they are buying.
The coalition, which is spearheaded by the Southeast Consumer Federation and includes members such as the Florida Bankers Association, the Florida Home Builders Association, the Florida League of Credit Unions and the Florida Association of Realtors, believe that you bring money to buyers in advance. It will help drive new sales and give the housing market the extra boost it needs.
Although the coalition has not yet devised a proposed system to advance the funds to home buyers, the group plans to meet with lawmakers in an effort to discuss the possibility in more detail. Of course, the coalition will have to act quickly if it hopes to implement the program in time for it to effectively help attract buyers, as home buyers must close on purchases by December 1 to be eligible for the tax credit. . However, if the group succeeds in getting the state to agree to advance the tax credit, it will be interesting to see how many other states do the same.