2009 Housing Stimulus bill:
$8000 Home buyer tax credit for home buyers
If you were ever thinking of BUYING or SELLING a home, now is the time. Please read this email in its entirety and see how you can get your share of this $8000 FREE money just for buying a home. This is not a gimmick. This is your tax dollars in action. Please call me if you have any questions.
The $789 billion economic stimulus package proposed by Obama government, contains a key housing stimulus bill designed to help first time homebuyers in order to revive the US housing market. This 2009 Economic stimulus plan has finally been signed by the President and is now a law. If you are a first time homebuyer planning to purchase a home in 2009, this housing stimulus can help you provide a refundable tax credit of 8000 USD. Read this entire email to understand the details of this housing tax credit and to find out if you qualify to receive this housing stimulus.
How does $8000 home buyer tax credit work?
In order to understand the details of the housing stimulus bill or $8000 home buyer tax credit (also called as $8000 housing tax credit) as a first time home buyer you need to understand the following six important points.
- What does first time home buyer exactly mean? -The law defines "First time home buyer" as a home buyer who has not purchased a principal residence for the last three years. For married tax payers, both the home buyer and his/her spouse must fit this criterion. Even non resident aliens who are not US citizens may qualify for this tax credit.
- Dates of home purchase - In order to qualify for the home buyer tax credit, the first time home buyer must purchase the house between January 1 2009 and December 1 2009, both dates inclusive.
- How much tax credit will homebuyers get? - Although this tax credit is referred to as $8000 housing tax credit, remember that the total amount of tax credit a home buyer gets is equal to 10% of the purchase price of the new house upto maximum of $8000. Thus in order to get a full tax credit of $8000 your purchased property must be above $80,000 in value.
- Income Limits for $8000 home buyer tax credit : First time home buyers with modified gross annual income of $75,000 get full benefit of this housing tax credit. The tax credit is gradually reduced for those with income between $75,000 to $95,000 and finally a home buyer gets no tax credit if his/her modified gross annual income is more than $95,000. For married taxpayers, the home buyer tax credit is gradually reduced to zero for modified gross annual income between $150,000 to $170,000.
- This is a Refundable Tax Credit - Remember that this is a tax credit and not a tax deduction. That is qualified first time home buyers deduct $8000 from their total tax owed to the IRS and NOT the total taxable income. Moreover a refundable tax credit means that in case the total taxes you owe to the IRS are less than $8000, you can actually get a refund for the balance amount!
- This $8000 home buyer tax credit, unlike $7500 tax credit does not need to be repaid to the IRS - the earlier $7500 housing tax credit was essentially an interest free loan which the home buyers needed to repay in 15 years. However, although this $8000 home buyer tax credit may look only $500 more than the previous housing tax credit, it is all yours! no need to repay it to the Federal government.
Here are one Income Tax tip for first time home-buyers: If you know you qualify for the $8000 home buyer credit there is no need to wait to file your 2009 tax return in order to get benefit of this housing stimulus. First time home buyers are actually permitted to reduce their income tax withholding by the amount equal to housing credit, i.e. $8000. You can then use this 'extra cash' got by increase in your take home pay for downpayment !
Call me immediately and let me show you how you can get this $8000 FREE money. This is not a gimmick. This is your tax dollars in full action.
For more information on this or any real estate need, visit us at http://www.TeamNewton.com.
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