More on the $15k tax credit

First of all, lets not get to excited as this is not a done deal yet. I don't like much of anything about these bailouts. But if they are going to give away $15k, I'll be happy to take it my serving.

Here's the whole thing if you want to read it.

It looks like this modifies the old $7500 tax loan program. This one is a tax credit though and NOT a loan. The qualifying max income caps have been changed from $75k as a single to $125K and the joint max income went from $150k to $250k (yippee). This makes just about every "normal" family eligible for this credit. You have to be WAY up there in the income brackets before you lose out on this one.

Any purchase made after Dec 31, 2008 will qualify. It looks like this is a $15k credit that can be used as part of your down payment if I read the thing right.

(g) Transfer of Credit-

`(1) IN GENERAL- A taxpayer may transfer all or a portion of the credit allowable under subsection (a) to 1 or more persons as payment of any liability of the taxpayer arising out of--

`(A) the downpayment of any portion of the purchase price of the principal residence,

`(B) mortgage, flood, and hazard insurance premiums in connection with the purchase and paid at or before closing,

`(C) interest on any debt incurred to purchase the residence,

`(D) State and local real property taxes paid in connection with the purchase, and

`(E) funding fees paid to the Department of Veterans Affairs in connection with the purchase.