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Frequently Asked Questions About the $8,000. Federal Tax Credit

By Debe Maxwell, CRS

Real Estate Agent with Savvy + Company (704) 491-3310 228209

February 20, 2009 03:58 PM

Congress Approved the $8,000 Tax Credit For Homebuyers. Here are answers to frequently asked questions.

Frequently Asked Questions About the $8,000. Federal Tax Credit

Q: A:	How much is the tax credit? The tax credit would be $8,000 or 10% of the purchase price, whichever is less.
Q: A:	Who is eligible? Similar to the $7,500 tax credit included in the Housing and Economic Recovery Act of 2008, the $8,000 tax credit (included in the 2009 economic stimulus plan) is available for the purchase of the primary residence by first-time homebuyers.
Q: A:	If this is for first-time homebuyers, how do I know if I am eligible for the tax credit? According to the IRS, any taxpayer who has not owned a home during the 3 years prior to the date of purchase can qualify for the credit.
Q: A:	Do I have to repay the $8,000.? No. Unlike the previous $7,500 tax credit, the $8,000. does not have to be repaid UNLESS, the home is sold within three years of purchase; at that time, the credit will be reversed.
Q: A:	Are there any income limitations on the tax credit? Yes. The tax credit is strictly for individuals with adjusted gross income of under $75,000 or $150,000 for joint filers.

Now that you're qualified for the Tax Credit, let's go shopping for Charlotte NC homes for sale today!

About the author:

Debe Maxwell is a Charlotte Residential Real Estate Broker, Certified Neighborhood & Relocation Specialist, ABR & e-PRO who can assist you with the purchase and/or sale of real estate in the Charlotte NC Metro Area. If you're relocating to or from any other area of the country, Debe connects you with any member of her team of relocation professionals in your destination or exit city of choice. The destination service is of no cost to you! The Maxwell House Group's quality service guarantee puts this team far ahead of the competition; providing unsurpassed customer service is their #1 priority! Debe Maxwell -- Helen Adams Realty -- 704.491.3310

Disclaimer: All information provided by this author is strictly an opinion, is not guaranteed, may be based on information collected from several sources, which may or may not be deemed reliable at the time of researching this article and may be time sensitive.

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Jeannie Kontis

Lancaster, PA

Debe, so easy and to the point! I love it! I think I will reblog it for my first-time buyer readers ~ have a great weekend!

Feb 21, 2009 12:43 PM

Terrylynn Fisher

Dudum Real Estate Group - BuyStageSell.com - Walnut Creek, CA

HAFA Certified, EcoBroker, CRS, CSP Realtor, Etc.

Brief, to the point and hopefully to the consumers!!! Here's to a great 2009 in real estate. Thanks Debe, always interesting to read you. Terrylynn

Feb 21, 2009 01:17 PM

Anonymous

Ann Gravel, Pat Bennett Realty, Plaistow, NH

Debe your message is on the money. I believe a good many Realtors have put this one in their

pocket, but it's always nice to have a review for those who have not.

Feb 21, 2009 01:52 PM

#19

Olga Diaz

COLDWELL BANKER TOMLINSON - Pullman, WA

Potter, Mng Broker, CRS, ASP, ePRO, ABR

Debe! Easy reading for the First Time Home Buyer. Great information, concise and to the point. Thank you! Have a great rest of the weekend!

Feb 21, 2009 02:07 PM

Debe Maxwell, CRS

Savvy + Company (704) 491-3310 - Charlotte, NC

The RIGHT CHARLOTTE REALTOR!

Hi All! Thank you so much for your comments and support--as always! Once again, I'm posting and RUNNING out the door to do something work-related, then getting in late and trying to comment on as many of your blogs as I can before turning in!

This tax credit post was simplified as I have been on a run of first-time home buyers this month and almost every one of them asks me about this benefit. I thought if I could shoot a link to a post with FAQ, then I'd be a step-ahead.

As for the question, Karen, they can qualify for one or the other but, not both. I'm all for the $8K and staying 3 years so they don't have to pay it back!

Debe in Charlotte

Feb 21, 2009 04:49 PM

Debe Maxwell, CRS

Savvy + Company (704) 491-3310 - Charlotte, NC

The RIGHT CHARLOTTE REALTOR!

Sheldon: I just HAD to come back and say that you won't believe this! WHILE you were writing your comment here, I WAS at Mickey & Mooch!!!! I did not take any photos but, did speak with the manager who asked me to re-send him my 'articles' on the place! You BET I did too! We'll see if that gets me that free steak! I had scallops, shrimp ant talapia this evening and they were DIVINE!

Have a wonderful Sunday!

Debe in Charlotte

Feb 21, 2009 05:34 PM

Pamela STETSON

Berkshire Hathaway HomeServices Abbott Realtors - Mahwah, NJ

I would love to help you buy or sell your home!

Thanks for the simple, direct Q & A style. It was very helpful. Best,

Feb 21, 2009 10:17 PM

Blowing Rock Real Estate Boone Real Estate

Blowing Rock Investment Properties - Blowing Rock, NC

Nice Breakdown, simple and easy to understand.

Feb 22, 2009 12:26 AM

Anonymous

Beth Reynolds

Great Information and simple to understand! Thanks Debe.

Feb 22, 2009 01:26 AM

#25

Jenny Durling

L.A. Property Solutions - Los Angeles, CA

For Los Angeles real estate help 213-215-4758

It's nice to have the info put together so simply. Thank you for that! Do you happen to know if first time buyers who are doing FHA financing with a non-owner occupant parent co-buyer can qualify for the credit? I haven't seen this addressed anywhere and would think if the parents own a home they would not qualify. Yet I heard on a radio show yesterday that the child would qualify. Anyone know the truth on this or where I could find out for sure?

Feb 22, 2009 04:00 AM

Gina Zimmerman

North Eastern Group Realty - Fort Wayne, IN

Fort Wayne Real Estate

this is great stuff. I was stopped in church today by a business owner and I was glad I could answer all his questions. thanks a million.

Feb 22, 2009 12:18 PM

Anonymous

Kieran Loughman

Hi Debe!

Thank you for the input. Even I can understand it.

Kieran and Cecelia

Feb 22, 2009 05:06 PM

#28

Anonymous

Dennis Kellermeier, Realtor, Grand Rapids, MI

Debe,

Thanks for the information on the tax credit. I have a question. My buyer is qualified for the tax credit but his fiance is not, as she purchased a home in November 2006. If they get married is my client then disqualified and does he need to return the money?

I'd aappreciate hearing from anyone who has the answer or has worked with a client in a similar situation.

Dennis

Feb 23, 2009 02:04 AM

#29

Debe Maxwell, CRS

Savvy + Company (704) 491-3310 - Charlotte, NC

The RIGHT CHARLOTTE REALTOR!

Thanks ALL! As for the question that Dennis has--perhaps a lender could pitch in here but, it would be my understanding that if Closing is to occur before the marriage and the Deed in the man's name, then there should be no issue. I would definitely check with your lender before moving forward with the transaction--as I am not the expert in this program!

Debe in Charlotte NC

Feb 23, 2009 02:25 AM

Anonymous

Dennis Kellermeier, Realtor, Grand Rapids, MI

Debe,

Fortunately, the tax credit is not a deal breaker for my buyer but it could be a nice wedding present and/or could help pay for some updates to the house.

Dennis

Feb 23, 2009 07:27 AM

#31

Marian Gregor-Ann

Keller Williams - Ann Arbor, MI

Arbor area Real Estate

Hi Debe, This is a nifty little format. Q & A is so staightforward.

Feb 23, 2009 10:15 AM

Debe Maxwell, CRS

Savvy + Company (704) 491-3310 - Charlotte, NC

The RIGHT CHARLOTTE REALTOR!

Dennis: Glad to hear that--you're right, it would make a GREAT wedding gift!

Marian: Thanks--it's easy to find your answer, isn't it?!

Debe in Charlotte NC

Feb 23, 2009 10:48 AM

Lori Cofer

Beasley Realty - Moscow, ID

REALTOR, Moscow Idaho Real Estate

Debe,

Thank you for this wonderful post!!!!! Simple, succinct and informational!!!!! Very much re-blog worthy!

Lori Cofer REALTOR

Pullman WA

Feb 23, 2009 08:46 PM

Anonymous

Craig

This is good info for people to know. I work with a lender who also tells me that the tax credit can be applied to down payment & closing costs. I'm not sure to what degree, but if it lowers the buyers out of pocket to close, this is great. He tells me that because it is a tax credit, that the funds are considered "seasoned" & that is why they can be used towards their down payment. Kool. Feel free to e-mail me with any more questions if you wold like. CraigsHouseDeals@yahoo.com

Feb 25, 2009 09:17 AM

#35

Paul McFadden

Responsive Pest Control - Seattle, WA

Pest Control, Seattle, WA.

Debe: Thank you. Two points. One, encourage everyone to do their taxes now. They'll need their refund money for their down payment. Two, the tax refund is for the period from January 1, 2009-December 1, 2009. Anyone who did a purchase before this is subject to the old rules (7500 credit that needs to be paid back over 15 years). Thanks for the post! I appreciate it.

Feb 26, 2009 05:27 AM