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First-Time Homebuyer Tax Credit - Revised Feb 2009. $8000 limit

$8000 first time buyer tax credit

$8000 FIRST-TIME HOMEBUYER TAX CREDIT

As Modified in the American Recovery and Reinvestment Act

Major Modifications Shaded - February 2009

SIGNED INTO LAW

FEATURE	CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008	REVISED CREDIT – EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009
Amount of Credit	Lesser of 10 percent of cost of home or $7500	Maximum credit amount increased to $8000
Eligible Property	Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.	No change All principal residences eligible.
Refundable	Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.	No change Purchasers will continue to receive refund for unused amount when tax return is filed.
Income Limit	Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).	No change Same income limits continue to apply.
First-time Homebuyer Only	Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.	No change Still available for first-time purchasers only. Three-year rule continues to apply.
Revenue Bond Financing	No credit allowed if home financed with state/local bond funding.	Purchasers who utilize revenue bond financing can use credit.
Repayment	Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing.	No repayment for purchases on or after January 1, 2009 and before December 1, 2009
Recapture	If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale.	If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
Termination	July 1, 2009 (But note program changes for 2009)	December 1, 2009
Effective Date	Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year.	All revisions are effective as of January 1, 2009

EXPERIENCE THE DIFFERENCE - CALL ME FOR ALL YOUR FIRST TIME BUYER NEEDS.

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Visit www.just100down.com to learn all about the HUD Repo program.

The Joe Metzler Team at Mortgages Unlimited Inc. lends for properties in Minnesota, Wisconsin, and Florida. Apply online at www.JoeMetzler.com

Posted by Joseph Metzler MMS UMB on 02/13/2009 05:39 PM

Comments (3)

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3 Comments on First-Time Homebuyer Tax Credit - Revised Feb 2009. $8000 limit

FEB

Good post, I bet it was tough to get it in that format. Too bad we can't use color!

Thanks for the post on the first time home buyer credit. I am just not upset that I purcahed my home in October and will have to repay my loan but someone that buys now and get a better price because of the failing economy will not have to repay their credit!

FEB

Joseph- thank you for putting all the information for the first time homebuyer tax credit together for us! Very helpful.

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