Guv'ment Money!

[drew.ward]

So I've been researching what money if any is available to assist in buying a boat. I don't own a home (nor do I want to) so this would be my residence.

I just found out that Mr. Obama wants to give me $8,000 to buy a boat if I can find one this year.

The details are that if you make 75K per year or less and have not bought a home in the last 3 years you can get a First Time Home buyer tax credit for 10% of the purchase cost of a home up to $80,000 (if your income is above 75k it's prorated).

It's a refundable tax credit which means that you get the money back as a payment when you file your federal taxes (they deduct the credit from what you owe -- if anything, and send you a check for the rest).

AND...liveaboard boats are listed as an eligible home purchase!

Now granted I'm not looking for an 80K boat, but it's nice to know that I can get 10% of my purchase price back next year even if it's only $2-3000.

So I am curious, does anyone know of any other money that is available to help in a boat purchase?

[Badsanta]

I think there is an alternative energy credit. So you may get something for some new solar panels. But I dont know the details. good luck.

[Randy]

Check into the details with an accountant. As I recall, it's not exactly free money. Kind of a gimmick that allows people to come up with some downpayment and there's something about paying it back but I can't remember the details.

[GordMay]

Originally Posted by Randy

Check into the details with an accountant. As I recall, it's not exactly free money. Kind of a gimmick that allows people to come up with some downpayment and there's something about paying it back but I can't remember the details.

The most significant difference from the tax credit that Congress enacted in July of 2008 and this new one, is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit.

However, home buyers must use the residence as a principal residence for at least three years* or face recapture of the tax credit amount.

* If the home is sold within 3 years of purchase, the entire amount of credit is recaptured on sale.

Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (mobile homes) and “houseboats”. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

You must complete your new purchase (or close and record) before December 1, 2009.

[Seahunter]

Well (whew) we did it. Filed and accepted for first home purchase tax credit.

[SailorKeddy]

I did it too, go us!

[sailorboy1]

I've been a home owner for over 25 years and have had 4 houses, all of which I lived in till I had to move for work etc. But I don't qualified for either of the home buying credits (I'm currently renting due to move). I'm not all that upset that other people don't have to pay for me (that credit is paid for by all the other tax payers). Far as I'm concerned all this credit did was take taxpayer money and spent it to help realtors. To think that is is also is getting used to buy boats just burns my ass! That's not the goverments money damn it, that's the taxpayers money!!

[Kordie]

Here in Australia we had a series of first home owners grants.

They were designed to stimulate the housing market as well as making the incumbent govt look good to young Australian families.

worked too well. Stimulated the market too much and prices went up very quickly by far more than the grant amount. Actually made it harder for the target market to buy into a home.

From what I have heard of the US market it is hurting real bad and I doubt you guys will have the same experience we did.

There are also Australian investors who think US houses are dirt cheap and want to buy in over there. The foreclosures etc. But the rules here don't apply there and I feel they will get burnt.

But your boats are about 40% cheaper than here! So I am buying more property here and my boat over your way in 2012. Hopefully I will have made some firm friends by then and can datch up for a beer and some advice when I lob into town.

Cheers

Simon

[Randy]

Originally Posted by Don Lucas

I've been a home owner for over 25 years and have had 4 houses, all of which I lived in till I had to move for work etc. But I don't qualified for either of the home buying credits (I'm currently renting due to move). I'm not all that upset that other people don't have to pay for me (that credit is paid for by all the other tax payers). Far as I'm concerned all this credit did was take taxpayer money and spent it to help realtors. To think that is is also is getting used to buy boats just burns my ass! That's not the goverments money damn it, that's the taxpayers money!!

So what's wrong with the tax payer having their money returned to them as a tax credit for buying a house whatever shape that house happens to be? Should they require the house to look just like yours, Don?

[denverd0n]

Classic case of robbing Peter to pay Paul. Why should people who cannot afford to, or do not want to, buy a house right now be forced to hand over a portion of their hard-earned money to those who do buy houses?

Of course, that's a rhetorical question, and the answer is very simple--every politician knows that if you rob Peter to pay Paul you can always count on Paul's vote!

[svHyLyte]

Originally Posted by denverd0n

Classic case of robbing Peter to pay Paul...and...every politician knows that if you rob Peter to pay Paul you can always count on Paul's vote!

And of course, these days there are a lot more Pauls than Peters.

[sailorboy1]

Originally Posted by Randy

So what's wrong with the tax payer having their money returned to them as a tax credit for buying a house whatever shape that house happens to be? Should they require the house to look just like yours, Don?

What crap!

Well the replies after this posting answer it. The problem is that I paid money into the gov't to run it, not to help someone buy a house. Even if it was "thier" money that got returned that still means I have to pick upo their share of the gov't costs!

I don't even own a house. And if I were to buy 1 no one is giving me money.

[hellosailor]

"The problem is that I paid money into the gov't to run it, not to "
See, that's the problem Don. Everyone thinks they can pay someone else to run the gumint, and the thing is, you just can't hire good help these days. Then there's the folks who con you into hiring them, they're all hucksters and worse anyway.
Might as well pay the wolf to guard the sheep.

[sailorboy1]

Well I don't see a way to not be political on this one. I will vote (I always do) and plan to just vote aganist all the current people because they alread proved they can not do the job.

But back to the orginal topic; if you don't see a problem with getting taxpayer money to buy something for yourself then I doubt anything I write is going to make any difference. Taxes are suppose to go toward running the common good for the people overall, not into your own pocket.

[Randy]

Unless it's your own pocket, you're plenty satisfied taking all the tax deductions - say on your mortgage interest when you owned a house - but not when there are deduction you can't claim that apply to others - say oil exploration credits and other oil subsidies.
That's fine, I wish you and I could pick and choose what our taxes go towards but that'll never happen and it wouldn't work other than casting your vote as you say. But who are you going to vote for? maybe Ron Paul (might be legitimate) but he's already in office and you want to vote him out. Palin ?, Alaska taxes the hell out of the oil companies and the entire state's population is on welfare of sorts with their permanent fund checks.
It's probably healthy to rail against the gov't but resolving these issues is simply not as simple as it seems it ought to be. Is a healthy population in "the common good"? Well the health care debate demonstrates that while it may be in the common good, how to achieve it certainly is not.