First time home buyer scores $8,000 tax credit
Advertisements:There’s a nice windfall for some homebuyers in the economic stimulus bill signed into law this week by President Obama.
- Who is eligible? Tax credit for First time home buyers only, no exception. Well, actually there is one exception: Buyers may not have owned a home for the past three years to qualify as “first time” buyer. 1 and 2
- Tax Credit Amount - $8,000 or 10% of home’s value: First-time buyers can claim a credit worth $8,000 - or 10% of the home’s value, whichever is less - on their 2008 or 2009 taxes.
- Cool factor: The tax credit does not have to be repaid. Credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount.
- Time frame of home purchase: The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
- Income Limits: Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. However tax filers can receive a proportional tax credit if income is up to $95,000 for an individual ($170,000 for joint filers), in other word credit will phase out if income is above $75000 for single tax payer (or above $150,000 is married and filing jointly)
- Okay, enough good stuff, tell me some fine prints….
- What if I sell my house after purchase? - No penalty if sold beyond 3 years. If sold within 3 years, ENTIRE credit will be owed back to the IRS for the tax year the home was sold.
- You have to be primary resident of your new home purchase. It should not be investment or rental property.
Via: 1. Real estate Yahoo.com 2. federalhousingtaxcredit.com 3. More FAQs about - $8000 Housing Stimulus Tax Credit 4. $8000 Home Tax Credit
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It is great for first time home buyer like me.