Comments on: $6500 Tax Credit for Existing Homeowners Who Purchase New Home Signed into Law, Not Retroactive, $8000 New Homebuyer Credit Extended

By: Renae

Renae — Thu, 25 Feb 2010 17:10:50 +0000

My husband and I have lived in our existing home for 11 years. We have been trying to decide whether to build a new home, or build on to our existing home. If we decide to build on to our existing home, would we qualify for the $6500 existing homeowner credit?

By: cori

cori — Wed, 17 Feb 2010 03:03:24 +0000

I am so upset…we for sure thought we were getting the 6500 tax credit and didn’t know about this Nov. 7 date until today, as we closed on Oct. 22. This is very unfair and I’m very angry about it. I know there is nothing I can do, but I am devastated over it, as I was counting on this money to help us out. So it is for sure Nov. 7 then?

By: Dub

Dub — Mon, 08 Feb 2010 23:02:29 +0000

I settled on nov 6th my realtor never informed me I should wait the one day to be eligible for the existing home buyers credit which I would qualify for if I had closed on the 7th is there any recourse either against my realtor for not informing that i would not be eligible for the tax credit? Thats 6500 out my pocket apparently there is not wiggle room with the IRS?

By: Kim

Kim — Tue, 26 Jan 2010 01:29:41 +0000

Try to help me out if you can…My husband and I purchased land (5 acres) which also included a shop in Feb 2007. The loan is classified as “Residential Real Estate.” We built a home on this land beginning in Nov 2008 and closed in June 2009. Our CPA told us that the shop was our first mortgage so we didn’t qualify for the 2008 first time home buyer. And as i understand, we don’t qualify for the new homeowner plan beacuse we didn’t live in the shop for 5 years? our plan was to buy land and build a house. It was never to call a shop our first home. any advice?

By: Rob

Rob — Tue, 17 Nov 2009 20:56:46 +0000

And from the Q and A from the IRS

Q. If I purchase a home in June 2009, and have already filed my 2008 tax return, can I amend my 2008 return or will I have to claim it on my 2009 return?

A. You can either file an amended return to claim it on your 2008 return or claim it on your 2009 return.

By: Rob

Rob — Mon, 16 Nov 2009 17:44:29 +0000

new info from IRS

“The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009.”

“Homebuyers who purchased a home in 2008, 2009 or 2010 may be able to take advantage of the first-time homebuyer credit.”

They Do specify that the INCOME limitations are only AFTER November 6th.

By: Rob

Rob — Thu, 12 Nov 2009 14:32:24 +0000

Not really. The “enacment of this act” date is still January. Again, this was just an amendment.

By: RC

RC — Thu, 12 Nov 2009 12:00:20 +0000

Rob- I had to go back and check the Bill itself, HR 3548.
The portion about existing homeowners is in section B:

(b) Special Rule for Long-time Residents of Same Principal Residence- Subsection (c) of section 36 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
`(6) EXCEPTION FOR LONG-TIME RESIDENTS OF SAME PRINCIPAL RESIDENCE- In the case of an individual (and, if married, such individual’s spouse) who has owned and used the same residence as such individual’s principal residence for any 5-consecutive-year period during the 8-year period ending on the date of the purchase of a subsequent principal residence, such individual shall be treated as a first-time homebuyer for purposes of this section with respect to the purchase of such subsequent residence.’.

Further down below is the effective date, which for (b) is when the bill was enrolled-
(j) Effective Dates-
(1) IN GENERAL- The amendments made by subsections (b), (c), (d), and (g) shall apply to residences purchased after the date of the enactment of this Act.

Hope this helps clarify.

By: Rob

Rob — Wed, 11 Nov 2009 17:00:29 +0000

Where does it say it goes into affect on the 7th? I can’t find that anywhere. The AMENDMENT went into effect, but the bill went into effect in January. No where in the wording could I find anything to say that it only included purchased AFTER the 7th.

By: RC

RC — Wed, 11 Nov 2009 11:52:43 +0000

@Rob- The $6500 tax credit for existing home owners who purchase a new home is new and part of the expansion of the bill- it went into effect on November 7th. The $8000 tax credit for new, 1st time home buyers (as defined by the original bill) has been extended, it did begin in January, and will extend until April 30th , 2010.

By: Rob

Rob — Tue, 10 Nov 2009 18:34:26 +0000

How do you know it isn’t Retroactive? Where does it specifically say that is not? Wasn’t the original bill signed in January?

By: RC

RC — Tue, 10 Nov 2009 12:00:15 +0000

@FFB- I am not sure either- it seems as if it could be a wash as far as existing homeowners are concerned.

@PT- I agree-it seems as if they are flying by the seat of their pants when it comes to some of these tax credits and other government subsidies!