The Senate voted last night to award anybody buying a home this year a tax credit worth up to $15,000 in hopes of jump-starting the sagging housing market.
The homebuyer tax credit offered by GOP Sen. Johnny Isakson would apply to any home purchased as a main residence and would cost taxpayers $19 billion. Senators approved it by a voice vote, adding the idea to President Barack Obama’s economic recovery bill. Isakson patterned his plan after adecades-old idea he says helped lift the economy out of recession in 1975.
People could claim the credit on their 2008 tax returns and it would apply to any home purchased for one year after the recovery plan becomes law.
Democrats readily agreed to the proposal, although it may be changed or even deleted as the stimulus measure makes its way through Congress over the next 10 days or so.
Contact your CPA for more details on how this could effect you.
Thursday, February 5, 2009
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