There’s a new tax credit that’s waiting for House approval that raises the tax credit from $7,500 to $15,000. However you may not know the whole story!
- It’s a TRUE tax credit – meaning if you don’t owe up to $15,000 in taxes in at least 2 successive years, you miss out on it. Lower income individuals would actually benefit more from the $7,500.
- It’s for every OWNER OCCUPIER of the home. No investors – opened up to all buyers
- 10% of the value of the home is what it is based on, whichever is lower – value or credit
- The new bill leaves the $7,500 as REPAYABLE! – Because it’s different, it’s essentially an interest free loan not a tax credit
Stephen Fuller, a housing economist at George Mason University in Fairfax, Virginia, said the credit is similar to a $5,000 break enacted in 1975 for buyers of newly constructed, never-occupied homes that reduced backlogged housing inventories to the point where demand for new construction was stimulated.
“The logjam right now is in the trade-up market,” Fuller said. “There’s a lot of pent-up demand. They’re ready and able once they get the go-ahead signal; this may be that kind of signal.”
You can read more at bloomberg .
You must log in to post a comment.