Should you wait for the $15000 Homebuyer tax credit

Senator Johnny Isakson, a Georgia Republican, introduced a bill in June that would increase the homebuyers tax credit to $15,000 and remove the income restriction and expand the program to all borrowers, not just first time homebuyers.
Some of my clients have asked if they should wait for the new tax credit of $15000. First of all, no one knows if the bill introduced by Senator Isakson will ever became law. The old adage "a bird in the hand is worth two in the bush" is perfect for this situation. The current tax credit has cost the government $2 to $3 billion, the proposed bill will cost around $32 billion. There is a lot of opposition to the $15000 credit so it is definitely not a sure thing.
YOU MAY NOT GET THE FULL $15000
The tax credit is based on 10% of the purchase price, so if you buy a home for less than $150,000, you will not receive the full $15000.
Unlike the current $8000 credit, it only offsets your tax liability over the next 2 years. Most first time homebuyers should take advantage of the current $8000 credit. I say this because most first time homebuyers do not have a $7500 tax liability each year and will not be able to receive the full $15000 credit. Also your tax liability will be lower after you buy a home because of your new mortgage deduction. To find your tax liability for your 2008 tax return, look on form 1040 line 61 or if you filed a 1040A it is on line 37 and line 11 on the 1040EZ. If the amount on this line is lower than $4000, you are better off taking the current $8000 credit.
If you are not a first time home buyer, and your situation allows you to put off buying a home, I recommend you wait and see what happens to this bill.

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