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When will the $15,000 tax credit take effect?

Mike Asked:
I saw that the senate added to the home-buyer tax credit that went into effect last year. I understand that it hasn’t been voted on or signed into law yet, but do you know as it stands now when the $15,000 tax credit would be effective from? We are considering purchasing a house and could put an offer in and close within the next few weeks but if this credit would only apply for future purchases we would wait. Is it going to be retroactive to the beginning of this year and do you have to claim it on next years taxes or could you get the money right away?

Jenny Asked:
I am in the process of buying my first home. I have been hearing a lot about a possible $15,000 credit for home buyers. When will it take effect? Who is eligible? How do I go about getting it?

We Found:
On February 4, 2009, the bill for the $15,000 tax credit was passed by the Senate. This tax credit was approved in hope to churn the real estate economy but it only helps in less expensive places. Last year there was a $7,500 tax credit but it didn’t boost the real estate economy at all.

Tax credit can only be used for primary residents and unlike the $7,500 tax credit passed last year, the money wouldn’t have to be repaid to the government. There’s also no income restriction on who can claim the credit. The credit is non-refundable and can be claimed over two years, so buyers whose tax liability is less than $15,000 would have a second year to capture the credit.

For more information, please visit the following sites:

Posted by on 02/06 at 03:13 PM
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