I have received many calls the past few weeks about the American Recovery and Reinvestment Act. The question asked most often is “How will the stimulus package affect me? Am I able to receive any direct benefits from this stimulus package?”
With a Tax Credit of $8,000 to qualified First Time Homeowners, a Changed Real Estate Market in Prince William and Fairfax Counties that includes Bank Owned Homes, Foreclosures, Short Sales all discounted heavily and the inventory of homes for sale…It is the Perfect Storm with buyers being the beneficiary.
The Stimulus Package was signed into law on Tuesday February 17, 2009 as the American Recovery and Reinvestment Act of 2009. The Stimulous Package offers a generous $8000 Tax Credit available to first time homebuyers. Unlike the previuos credit of last year, the tax credit has been reformed and the new credit does not have to be repaid. Last years tax credit offered $7500 to first time homebuyers that had to be repaid over 15 years. This is a big change with the new credit now available...an icreased amount and no repayment. However, you must be aware of the guidelines.
What are the specifics of the tax credit?
- First-time buyers can claim a credit worth $8,000 - or 10% of the home’s value, whichever is less - on their 2008 or 2009 taxes
- You must be a first time homebuyer or someone who hasn’t owned a home in three years. •
- You do not have to pay the money back if you live in the home for three years.
- Buyers must make less than $75,000 for singles or $150,000 for couples. A partial credit may be available for Higher-income buyers.
- The home must be purchased between Jan. 1, 2009 and Nov. 30, 2009.
- Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return.
As always you should consult your Tax Accountant and Attorney for how this $8000 credit could help you and the specifics of the bill. You can also find additional information about this home credit at WhiteHouse.gov
American Recovery and Reinvestment Act
Sec. 1006
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