Okay, maybe not all of them. I was a first time home buyer once, too.
** Oh sorry, I just drifted off to a dreamland involving no screaming kids or barking dogs. **
But the latest rounds of criticisms of the Housing and Economic Recovery Act of 2008 have gotten to me.
I’ll just say upfront that I’m not a fan of the Act. I personally don’t think that it’s good policy for a lot of reasons. Primarily, I am not keen on bailing out an industry that dug its own grave.
However, it is what it is and it’s not all bad. Two of the provisions are particularly note worthy from a tax perspective.
One, for the 2008 tax year, taxpayers who do not itemize but pay property taxes will receive up to a $500 additional standard deduction, or $1,000 for married couples (if your property taxes are lower, you can only claim the amount paid – and if your property taxes are actually lower, please, please tell me where you live!). This is a nice nod, I think, to seniors and high income taxpayers who largely missed out on the last economic stimulus package. It’s not terribly common for homeowners to take the standard deduction – the mortgage interest deduction is what tends to make it worthwhile for many taxpayers to itemize. But those that may take the standard deduction and own a home tend (though not always) to be seniors or higher income folks who have already paid off their home mortgage.
The other provision – the tax credit for first-time home buyers – is the one that’s getting the most press, and the one that’s driving me nuts. It’s not so much bothersome because of the credit, again, it is what it is, but moreso for the loud whining from potential home buyers. I keep hearing, “Why don’t you give us more?”
I’m sorry, what?
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