The Nebraska Real Estate Commission hosted Chris Bird this week at the state convention. Chris Bird is a former IRS agent of 16 years and had a wealth of knowledge that he shared openly with those Realtors who attended his class. I will break this info up into several posts so my fingers don't cramp up! :)
Here is some of the info he shared about the first-time home buyer tax credit:
1. What's this new home buyer tax incentive for 2009??
The 2008 $7,500, repayable credit is increased to $8,000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8,000 amount. If the house costs less than $80,000, the credit will be 10% of the purchase price. This is an individual purchases a home for $60,000 the credit would be $6,000. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.
2. Who is eligible??
Only first-time home buyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.
A Deeper question that may apply to some:
1. If I claim my 2009 $8,000 credit on my 2008 tax return, will I have to repay the credit jest as the 2008 credit of $7,500 has to be repaid??
No. Congress anticipated this confusion and has made specific provisions so that there would be no repayment of 2009 credits that are claimed on 2008 returns. You can essentially close on your home, then amend your 2008 return and receive your credit a couple weeks after closing!
My fingers are cramping...More to come on this fantastic topic! As always, for all information real estate related check npdodge.com.
Robert Wiebusch~NP Dodge Blog Author
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