Tax Credit Provides Unbelievable Opportunity for 1st Time Home Buyers
In its efforts to stimulate the economy and revive the housing market, Congress has enacted legislation providing a tax credit of up to $8,000 for first-time home buyers.
But time is of the essence for buyers who want to take advantage of this opportunity. Only homes purchased on or after January 1, 2009 and before December 1, 2009 are eligible. As an example a first time home buyer could actually buy a home in March 2009 and get a credit on their 2008 Tax return they file by April Deadline. If they know they are settling after April 15th, they could file an admended return or file for an extension to take advantage of the credit.
Highlights of $ 8,000 Tax Credit
The tax credit is for first-time home buyers only.
The tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
Beware – the tax credit is repaid to the IRS if home is sold or ceases to be a principal residence within three years of the purchase date.
One Comment
I’ve been included in taxations for longer then I care to acknowledge, both on the individualized side (all my employed life history!!) and from a legal point of view since passing the bar and pursuing tax law. I’ve provided a lot of advice and corrected a lot of wrongs, and I must say that what you’ve posted makes utter sense. Please continue the good work – the more individuals know the better they’ll be armed to cope with the tax man, and that’s what it’s all about.