A recent survey of prospective home buyers suggests that most people still are not aware of the first time home buyer tax credit available to them? What's worse, time waits for no one and this tax credit is soon to expire. Please use this blog and the IRS links within it to educate your clients, family, friends and neighbors of the historic opportunity importance of RIGHT NOW.
Join us in a 20 minute live presentation on the 2009 $8,000 tax credit for first time home buyers. Click the date/time below that works for you.
Wed, Sep 30, 2009 3:00 PM - 3:30 PM EDT
Wed, Oct 7, 2009 3:00 PM - 3:30 PM EDT
Wed, Oct 14, 2009 3:00 PM - 3:30 PM EDT
Wed, Oct 21, 2009 3:00 PM - 3:30 PM EDT
Wed, Oct 28, 2009 3:00 PM - 3:30 PM EDT
What are the 2008 and 2009 housing tax credits?
The 2008 and 2009 housing tax credits are federal tax incentives to help revitalize the housing market, prevent foreclosures, and strengthen the economy.
The credits are part of the 2008 American Housing Rescue and Foreclosure Prevention Act, and the American Recovery and Reinvestment Act of 2009.
The housing tax credits offer tax incentives to homeowners, first-time homebuyers, and developers of low-income housing, including:
- a two-year limited property tax deduction for homeowners who do not itemize their deductions
- a refundable tax credit for eligible first-time homebuyers
- increased tax credits for developers of low-income rental housing
What is the real property tax deduction?
Homeowners who pay property taxes but do not itemize their deductions get a limited increase in the standard deduction on their 2008 and 2009 federal taxes. The property tax deduction:
- is for homeowners who do not itemize deductions
- is a temporary deduction, only for 2008 and 2009 taxes
- increases the standard deduction by $500 (single) or $1000 (married filing jointly), but not more than the amount paid in state and local property taxes for the year
The instructions for federal tax Forms 1040 and 1040A include a Standard Deduction Worksheet to help you calculate your standard deduction with the property tax deduction included.
Who is eligible for the first-time homebuyer tax credit?
To qualify for the first-time homebuyer tax credit, you must be a homebuyer who:
- did not own a primary residence during the three years prior to the purchase
- bought a single-family principal residence in the U.S. on or after April 9, 2008 and before December 1, 2009
- is a citizen, or a resident alien as defined by the IRS
- did not buy the home from a related person who is an ancestor or descendant (spouse, parent, grandparent, child, grandchild, etc.)
- meets the following income guidelines:
|
First-Time Homebuyer Tax Credit Income Limits |
||
|
Filing status |
Full credit |
Partial credit* |
|
Single or |
less than $75,000 |
$75,000 to $95,000 |
|
Married filing jointly |
less than $150,000 |
$150,000 to $170,000 |
•· *The tax credit phases out for homebuyers with incomes in the partial credit range. Homebuyers with incomes above the upper limit do not qualify for the credit.
- For the 2008 tax credit, you must have owned and lived in the home until the end of the tax year.
- For the 2009 tax credit, you must own and live in the home for at least three years.
For more eligibility rules, see "Who Can Claim the Credit" on Form 5404 First Time Homebuyer Credit.
What tax forms do I file?
•· Property tax deduction:
For the property tax deduction for homeowners who do not itemize, you enter the increased standard deduction on federal tax Form 1040 or Form 1040A. You do not file a special form.
The instructions for Forms 1040 and 1040A include a Standard Deduction Worksheet so you can calculate your standard deduction with the property tax deduction included.
•· First-time Homebuyer Credit:
To claim the First Time Homebuyer Credit, you must file Form 5405 with your federal tax return. You can get a copy of Form 5405:
-
- by downloading the form from the IRS web site: 2008 Form 5405 - First-Time Homebuyer Credit (PDF)
- or by calling the IRS at 1-800-829-3676 and asking them to mail Form 5405 to you
- Note: 2009 forms are not yet available
Helpful links
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First-Time Homebuyer Credit Information Center and First-Time Homebuyer Tax Credit
Information about the 2008 and 2009 homebuyer tax credit, including which home purchases qualify, the amount of the credit, income limits, who cannot take the credit, and how the credit must be repaid. From the IRS.
In-Depth: 2009 First-Time Home Buyer Tax Credit and American Recovery and Reinvestment Act of 2009
Information about the 2009 first-time homebuyer credit and other housing-related provisions of the 2009 economic stimulus package. Includes Comparison of the 2008 and 2009 first-time homebuyer tax credits. From the National Association of Realtors®.
CCH Tax Briefing: Housing Assistance Tax Act of 2008 (PDF)
Detailed tax briefing from CCH, a professional tax and accounting organization. Includes explanations and comments about the real estate tax deduction, first-time homebuyer credit, low-income housing credit, and other provisions of the 2008 tax act.
Press Release: The American Housing Rescue and Foreclosure Prevention Act
Press release from the U.S. House of Representatives Ways and Means Committee about 2008 housing assistance legislation, including H.R. 3221 Housing Assistance Tax Act of 2008 Summary.
Join us in a 20 minute live presentation on the 2009 $8,000 tax credit for first time home buyers. Click the date/time below that works for you.
Wed, Sep 30, 2009 3:00 PM - 3:30 PM EDT
Wed, Oct 7, 2009 3:00 PM - 3:30 PM EDT
Wed, Oct 14, 2009 3:00 PM - 3:30 PM EDT
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