New Jersey Real Estate Agent

Tax Credit Amendment Was Approved by the US Senate                  

Princeton real estate is not completely immune from the woes of the housing market and the general economic recession everywhere else in the country. We discussed the effect of President’s Obama, TARP and potential actions by US Senate in my previous article. TARP has already had impact on Princeton real estate having stabilized banking companies and thus preventing further job losses. Many homeowners in Princeton area work in financial and related industries and the relatively low foreclosure rate in the area could have been much higher without TARP.

Last evening, the United States Senate unanimously passed a bipartisan amendment, creating a $15,000 tax credit to individuals who purchase a home in the next year. Senators Johnny Isakson (R-GA) and Joe Lieberman (ID-CT) were the sponsors of the amendment. here are the highlights so far:

• Direct tax credit twill apply o any home-buyer 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.
• Allowes only purchases of a principle residence
• Recaptures the credit if the home is sold within two years of purchase (tp prevent misuse)
• The amendment would sunset the current $7,500 housing tax credit on the date of enactment.

While the final details of the Stimulus Bill are still being debated, these provisions would help stabilize Princeton real estate by making purchasing a home in the Princeton area more affordable for the fist time buyers. It would also encourage the buyers who were waiting on the sidelines to come in the market to take advantage of this credit.