Filing ch7 & $15K home purchase credit (crossing fingers!)

[moneytree]

I've been posting for a couple. They should be able to file a ch7. The atty was able to work out the #'s, because they did go over on the means test by $800 or so. Anyway, they had purchased another house (buy and bail, but not intentional) due to medical necessity and they originally did not qualify for the $7500 tax credit because they bought the 'now' being foreclosed him less than 3 yrs. ago (it was for first time home buyers, or more than 3 yrs for house purchase). NOW the gov't has changed it to INCLUDING ALL homebuyers. Awesome. Makes sense. But can the trustee touch their potential $15K refund? Or are they exempt because it's a ch7 (or does it not matter). The atty secretary is on lunch, so you guys are the next best thing to answer this question.

Now in my case, we bought in Nov. 08 and are praying that we can also get the $15K credit (from $7500). Since they say we can include it on our 2008 taxes (we did check w/ our tax guy & he thinks it's a 'go') I worry that if the new law goes into effect in 10 days or so, that they'll draw the line and end the $7500 package from Mar/Apr 08 home purchase to Feb 'whatever' and then RESTART the $15K bill from 'x' date in Feb. and go until Feb '10. What do you think? And now I hear it doesn't have to be paid back! wow.

thanks for your help!

[jribe]

As of right now- the 15k tax credit has not been passed, it's part of the stimulus bill. It is for primary residences bought in 2009 (not 2008) but can be included on 2008 returns. It can be paid over 2 years if you wish- total would be 15k (or 10% of home purchase - which ever is less). They have stated that this bill would take over the $7500 tax credit on the date that the bill becomes effective. Meaning that if someone bought in 2008 and qualified for the 7500- they couldn't qualify for the 15000 because that needs to be done in 2009. As far as i have heard it will be good through the end of 2009 as well (instead of the 7500 tax credit being good through june).
The couple you are posting for will need to be able to cover the 15000 possible credit with exemptions. If they can't- the trustee can take it. But, they can have it paid out over 2 years as well- so they may want to do a small amount for 2008, and most for 2009 taxes.

They will need to check and make sure this new house they bought was done as their primary residence though. They won't give the credit for second properties.

Good luck with everything

I've been posting for a couple. They should be able to file a ch7. The atty was able to work out the #'s, because they did go over on the means test by $800 or so. Anyway, they had purchased another house (buy and bail, but not intentional) due to medical necessity and they originally did not qualify for the $7500 tax credit because they bought the 'now' being foreclosed him less than 3 yrs. ago (it was for first time home buyers, or more than 3 yrs for house purchase). NOW the gov't has changed it to INCLUDING ALL homebuyers. Awesome. Makes sense. But can the trustee touch their potential $15K refund? Or are they exempt because it's a ch7 (or does it not matter). The atty secretary is on lunch, so you guys are the next best thing to answer this question.

Now in my case, we bought in Nov. 08 and are praying that we can also get the $15K credit (from $7500). Since they say we can include it on our 2008 taxes (we did check w/ our tax guy & he thinks it's a 'go') I worry that if the new law goes into effect in 10 days or so, that they'll draw the line and end the $7500 package from Mar/Apr 08 home purchase to Feb 'whatever' and then RESTART the $15K bill from 'x' date in Feb. and go until Feb '10. What do you think? And now I hear it doesn't have to be paid back! wow.

thanks for your help!

[moneytree]

Are you sure? I am hearing from the accountant & others that we qualify for $15K???

WASHINGTON - The U.S. Senate today unanimously approved an amendment by U.S. Senator Johnny Isakson, R-Ga., to stimulate the nation's declining housing market by offering a $15,000 tax credit to individuals who purchase a home in the next year.

"It is time to fix America's problem, not throw money at the symptoms. It is time to fix housing first. It is rare that we have a road map to success in times of difficulty, but this country has once before realized a housing crisis every bit as bad as the one we have today and economic troubles every bit as dangerous," Isakson said. "We have a pervasive housing problem, and we have a historical precedent that works. I am proud this Senate has joined together, learned from history and repeated a method that worked by adopting this amendment."

Specifically, Isakson's amendment to the pending economic stimulus bill would provide a direct tax credit to any homebuyer who purchases any home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislation's enactment, and the tax credit would not have to be repaid.

The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principal residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment.

(which would be immediate and since it's avail. for those within 1 yr of the enactment, then they better mean going back to Apr 08...and then as they state, end 9/09)

Patiently waiting for a decision! But it does look good that this bill will pass.

[kristyf]

bad news - the amendment doesn't go back in time... only after the enactment date. MAN - we just bought a house in December. so much for $15k.

http://isakson.senate.gov/Amdt_106.pdf

[moneytree]

Yeah, we came across this web site last night

...many explain that we'd get the $7500 instead...if they can change the bill so we do not have to pay it back, then they may as well make it $15K

...lots of great comments on this web page I am posting and a lot of pissed off people!

...the $15K is pretty unfair; they should at least offer something to home buyers who have purchased at the top of the market too (go back 3-5 yrs?)

***************

http://www.fivecentnickel.com/2009/02/04/15000-homebuyer-tax-credit/#comments

[jribe]

just saw this new article come out about the 15k tax credit... answers some of your questions

http://www.usnews.com/blogs/the-home-front/2009/02/06/the-15000-home-buying-tax-credit-6-things-to-know.html

Senate is supposed to vote on the stimulus bill by Sunday

[TEW]

Well this is great except for the 7.5% of the US that are now unemployed the 2 million that filed BK this year or anyone that doesn't have a better then 700 credit score.

[moneytree]