If you are one of the first time home buyers sitting on a fence right now, this program may bump you off the fence and into your new home. Could you use $7,500? Well, guess what? If you qualify, it's yours! And it's not tough to qualify!
The government is offering this $8000 to any first time home buyer that purchases a new home until Devember 31,2009. To qualify you must be a US citizen (or qualified "nonresident alien") and make less than $75,000 a year. ($150,000 for married couples filing jointly). You also have to be a legitimate 1st time home buyer OR you can't have owned a home in the last 3 years… This means if you owned a home before and then became a renter again for 3 years or more you qualify again as a first time buyer. That's it! Your tax person can go into more detail for you.
How does it work?
If you owe less than the $8.000.00 for taxes, the IRS cuts you a check for the difference. If you were owed a refund, add the $8.000.00 to your refund amount and that's what you'll receive. So, for example, let's say you owe $1,500 at tax time and your 1st time home buyer credit is $8.000.00 . (8000-1500=6500) You will get a refund check in the amount of $6,500.
If, for another example, you are owed a refund of $1,500 and your 1st time home buyer credit is $8.000.00 (8000+1500=9,500), you will get a check in the mail for $9,500. How cool is that?
There are no restrictions on the type of home: single family home, townhome, condo, new construction, or resale AND if you are a married couple filing separately, your credit will be split - $4,000 to each spouse.
Home Buyer Tax Credit: The 2008 tax credit provision has been amended as follows:
a. Tax credit is increased to $8,000
b. The income limits remain the same: ($75,000 for an individual; $150,000 for a couple).
c. First-time homebuyers and principal residences only. First time home buyer is defined as the purchaser (and the purchasers spouse) may not have owned a home in the three years prior to the purchase date of the home.
d. Tax credit is available until December 1st (previously it expired on July 1st).
e. Waiver of recapture (i.e. no repayment requirement) for properties purchased in 2009 prior to December 1st
Ø The provision is retroactive to purchases made on or after January 1, 2009.
Ø Recapture section does apply to properties sold in first three years.
f. Waiver of prohibition on financing by mortgage revenue bonds is included.
For more info visit:
http://www.federalhousingtaxcredit.com/
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