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The First Time Homebuyer Tax Credit is REFUNDABLE, You get the money over and above your tax liability!
Many Realtors and Clients have inquired about the refundability for the First Time Home Buyer's Tax Credit as revised and enacted into law by the Congress and President Obama last week.. Below is how I see it: (Please keep in mind that anyone seeking this or any other tax credit and/or deduction should seek competant advice from a tax professional. I am not a tax professional) All that said lets go. In 2008 Congresss created a $7,500 First-Time Homebuyer Tax Credit. It was effective for First-time Homebuyers who purchased after April 8th, 2008 and would run through July 1, 2009. It could be taken on your 2008 or 2009 taxes regardless if the tax payer purchased in 2008 or 2009. The largest problem was that this credit would have to be repaid through payroll withholding and tax liability over a 15 year peroid of time. Many people considered it a debt and not a benefit. Allthoug in all reality is was a debt but is was an interest free debt, which of course, you do not see too often. All in all a pretty good deal if you could get it. Powerful groups such as the NAR, The Mortgage Bankers Association ... more
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