More Money, More Money—Improved $8000 Tax Credit
More Money, More Money-Improved $8000 Tax Credit
Education is the key - This is still a great opportunity for first time buyers. I searched the web for valid information & found many sites, blogs and articles that are simply opinion & not facts. Get the FACTS from the National Association of Home Builders
Opinions Aside -This is what I learned:
- 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% of the home's purchase price up to a max of $8,000.
- The credit is available for homes purchased on or after January 1, 2009 & before December 1, 2009.
- Check out the income requirements
Who can use it??? Who is considered a First Time Buyer
First-time home buyers purchasing any kind of home-new or resale-are eligible for the tax credit. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the 3 year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
Income limits:
- There are income limits ~ it can't exceed 10% of the purchase price of the home
- $75,000 single tax payers
- $150,000 for married taxpayers filing a joint return.
The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The phase out range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
Is a tax credit the same as a tax deduction?
No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.
If these sounds like complicated tax talk meet with your personal Tax Professional or CPA.
Check out this site for more facts & a great Q & A section
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