Comments on: $8000 First Time Home Buyer Tax Credit

By: Dave Smith

Dave Smith — Mon, 16 Nov 2009 22:23:38 +0000

Carmen,

If those figures are correct, that would be about right. Now it is extended.

By: Carmen Arruda

Carmen Arruda — Thu, 12 Nov 2009 22:33:58 +0000

Check out this story about the extension of the housing tax credit:

http://abclocal.go.com/wabc/story?section=news/politics&id=7087955

If you want to skip it, here’s the interesting part (which they do not explain in detail):

1,400,000 homebuyers have taken advantage of the tax credit.

The story specifically states that NAR estimates that 350,000 of those wouldn’t have purchased without the tax credit, meaning 1,050,000 would still have purchased without the tax credit.

This means the total cost of the program breaks down like this:

1,400,000 x 8,000 = $11,200,000,000 (11.2 BILLION)

This means the total cost to give the 350,000 people who wouldn’t have purchased a home without the tax credit was the 11.2 Billion; which means:

11,200,000,000 / 350,000 = $32,000 per transaction

So:

It cost $32,000 for each individual who got the $8,000 tax credit, to motivate them to purchase a new home.

Wow.

By: Dave Smith

Dave Smith — Wed, 16 Sep 2009 02:01:26 +0000

Chris,

There are restrictions beyond those in the form above?

“Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).”

By: chris swenson

chris swenson — Wed, 16 Sep 2009 01:22:22 +0000

Sadly the NAR form is not complete. There are income restrictions that keep some buyers from qualifying. Not a good thing.

Chris

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Tue, 15 Sep 2009 20:16:54 +0000

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By: Dave Smith

Dave Smith — Fri, 27 Mar 2009 17:47:33 +0000

Berma,

I agree that would be a big help to the housing market all across the country. I still firmly believe the recovery begins with housing. And getting credit flowing again is hand in hand with it.

By: Berna Oreshan

Berna Oreshan — Fri, 27 Mar 2009 17:21:33 +0000

I keep a copy of the Tax form on my web site for clients to use.

I was reading an article from the Senator that proposed the tax credit and he is still going to fine tune it, possible so that more money will be credited and, hopefully, so that all Buyers can claim the credit. It sounds like he is being fair to everyone and this really could stimulate our economy.