The Housing and Economic Recovery Act of 2008 authorizes a $7,500 tax credit for qualified first-time home buyers purchasing homes on or after April 9, 2008 and before July 1, 2009. TMy Question, what is the significance of the dates. Why not start on the first of the year instead of April 9th. Thanks for your input,
Marion
========================================= MODERATOR'S COMMENT: That's what's written into the law.
wrote
April 9th is probably nothing more sinister than the date it was signed into law. But I can come up with a good storyline if you want me to.
Why the "before July 1, 2009"? .....because the heroes in DC think the housing problems will all be resolved by then .....because they can renew the law and brag about saving the housing market in front of the cameras .....because they can't spend all the bailout money on taxpayers who might actually spend that money in the economy.
Best guess.. they typically don't back date specialized credits as it might smack of favoritism. So specialized credits are generally effective no earlier than when the bill becomes public (introduced).
June 30, 2009 is the end of fiscal year 2009. I'm guessing that the budget only allowed for around $14B of credits to be taken.
It used to be that tax law written so that a certain provision might become effective the date the bill was signed into law.
ChEAr$, Harlan Lunsford, EA n LA
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