$8,000 First Time
Home Buyers Tax Credit
Time is running out the $8,000 tax credit ends December 1, 2009. .
The $8,000 First time Home Buyer tax credit is available to first time homebuyers who purchase a home before December 1 of this year. Homebuyers can claim the credit on their 2009 tax return
FHA allowed the tax credit to be advanced to assist the purchase in the form of a gap loan but the FHA rules are prohibitive and no lenders, to my knowledge, are participating.
The tax credit represents 10 percent of the purchase price of a home up to a maximum of $8,000 First time Home Buyer tax credit for married taxpayers filing separate returns. The $7,500 credit that was authorized under earlier legislation last year was actually a 15 year loan; the new tax credit does not have to be repaid by the homeowner under ordinary circumstances. .
The credit does have to be repaid if the homeowner sells the home in less than 36 months or if the home ceases to be his principal residence during that time..
For the purpose of this credit, a first time homeowner is defined as one who has not owned a home for the 36 months ending on the date of purchase..
The $8000 tax credit is available to taxpayers with adjusted gross incomes up to $75,000 or $150,000 for married taxpayers filing jointly. Above those income levels the credit is phased out gradually..
Homeowners who purchased a house between April 8 and December 31, 2008 are not eligible for the new credit. They are covered by the earlier legislation and can claim the $7,500 repayable credit..
Forms and instructions for claiming the credit on 2008 tax returns are available at http://www.irs.gov . The form number is 5405..
Bill Ladewig
800.664.SAVE (7283)
mail to: Bill@YourFhaGuru.com
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