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Thread: $6500 tax credit for current homeowners to purchase new homes

  1. #11
    jvirginia is offline INCIIDer - A Community Creator
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    I didn't say anything about the adoption tax credit - just the one for homeowners to buy new homes.

  2. #12
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    i know. it's something i relate to and equate the homebuyer's credit.

  3. #13
    jvirginia is offline INCIIDer - A Community Creator
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    Tax credits are not bad per se ... they are an instrument of public policy to encourage or enable certain things that we consider (as a society) "good" or that we want to make easier for people, or to address perceived inequities.

  4. #14
    Dani is offline INCIIDer - A Community Creator
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    What's the difference between sub-prime mortgage brokers offering balloon payment plans and the government handing out tax credits? Both are encouraging people to buy houses they can't afford. I mean, what happens in the second year of the loan when homeowners don't get that $6500 back?

  5. #15
    jordansmom is offline INCIIDer - A Community Creator
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    Quote Originally Posted by Dani View Post
    What's the difference between sub-prime mortgage brokers offering balloon payment plans and the government handing out tax credits? Both are encouraging people to buy houses they can't afford. I mean, what happens in the second year of the loan when homeowners don't get that $6500 back?
    I would guess that the $6500 is to more to cover one time expenses such as closing costs or a down payment. Presumabling lending guidelines would not allow anyone to finance more than their income allows, regardless of the tax credit.

  6. #16
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    tax credit doesn't mean you get money back. It means that the amount is deducted from the amount of taxes you owe at the end of the year.

  7. #17
    Dani is offline INCIIDer - A Community Creator
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    Yes, but if you usually get a tax refund, or the amount you owe is less than the housing credit, you will get money back, right?

  8. #18
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    i'm no cpa.my understanding is that it is not $$ http://en.wikipedia.org/wiki/Tax_credit'refunded'

  9. #19
    jordansmom is offline INCIIDer - A Community Creator
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    Quote Originally Posted by Dani View Post
    Yes, but if you usually get a tax refund, or the amount you owe is less than the housing credit, you will get money back, right?
    It wouldn't necessarily matter how much you owe( on April 15th) or if you get a refund. I think it would matter how much your tax liability was for the year. So if for example your tax liability for the year was 10,000, and you had 12,000 deducted from your pay, you would get a refund of $8500. 2,000 for overpayment of taxes and $6500 for the tax credit.

  10. #20
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    Default new homeowner credit

    If you're filing your tax return and are a property owner, listen up. Have you taken advantage of these property owner tax credits? They're simple material, but not every person does it.

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