8,000 Tax Credit
The present $8000 Tax Credit is already an attempt to amend the subsisting $7500 Tax Credit. So, the stages run like this, $7500 Tax Credit - $15000 Tax Credit - $8000 Tax Credit.
The first matter that we are going to take up is the present $7500 Tax Credit. What is probably the reason why it is attempted to replace the same?
This is otherwise known as the Federal Housing Tax Credit of $7500. To those who seem to be the first time to read or encounter this Bill, well this is aimed at feeding the cravings of those who would want to own houses for the first time, yet find that having a home is kind of vague, this offer of $7500, by way of legislation, may already be the answer. However, there lies a prohibition. That is, only homes that have been purchased from April 9, 2008 to July 1, 2009.
Now, this Tax Credit is proposed to be amended from $7500 to $15000. This is without consideration to the repayment of $7500 to those who would qualify with the latter Tax Credit.
The Senate of the United States has approved an amendment to this Act. It would then allow such an increase, to those of qualifying residence. This amendment includes not only new homes but also re-sale homes. Should this be approved after deliberation, an approximate of ten (10%) percent of such a home's purchase price, which would not exceed $15000, may be applied as a tax credit.
Thereafter, this $15000 Tax Credit is then attempted to be replaced by the current $8000 Tax Credit. Once it is approved by deliberation in both the Senate and House of Representatives, it is automatically forwarded to President Barrack Obama for approval and passage into a law.
Finally, we are now going to know about the present content of the $8000 Tax Credit. What is its difference from the foregoing? Well, unlike the two preceding Tax Credits, this one is available only to those who would want to have homes for the first time. Hence, not all who would want to avail of this one can easily grab and qualify.
Delving further with the same legislation, this would definitely apply to the first time home buyers. Another qualification is that he must maintain a residency from January 1, 2009 up to the end of November 2009, that is of course tantamount to the first day of December. Just like the $15000 Tax Credit, this one does not provide for a repayment, and that should the home be sold for the period of three (3) years, then the entire amount of $8000 Tax Credit will be incarcerated in one way or another.
But before you react, you should first consider that the same is not yet in its final track or stage. At this moment, the subsisting one is the $7500 Tax Credit, since the two amendments have neither been passed nor approved by the President. We should wait in the meantime, until it is finally converted into law.
