There are two first-time home buyer tax credits for which homebuyers should be aware. The first one is for people who purchased a home after April 8, 2008 and on or before Dec. 31, 2008. The key features of this credit are:
•· Those buyers may claim a tax credit on their 2008 tax return, with the credit being 10 percent ofthe purchase price,up to $7,500, or $3,750 for married individuals filing separately.
•· The tax credit must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year.
The second first-time homebuyer tax credit is for hombuyers who close on their home in 2009 but before Dec 1st, 2009. The key features of this credit are:
•· The credit is 10% of the purchase price, up to $8,000, or $4,000 for married filing separately.
•· This credit does not have to be repaid, provided the home purcahsed remains their main home for 36 months after the purchase date.
•· The amount of this credit begins to phase out for taxpayers whose adjusted gross income (AGI) is more than $75,000, or $150,000 for join filers.
•· The taxpayer also has a special option available for claiming this tax credit eitehr on their 2008 tax return (due April 15th,2009) or on their 2009 tax return filed the next year.
Source: www.irs.gov
This information is from sources deemed to be reliable, but must be verified with ones' own legal, accounting and tax professionals. This is provided as information only, and is not guaranteed.
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