First-Time Homebuyer Tax Credit……

By
Real Estate Agent with Keller Williams Realty Chesterfield

First Time Home Buyers

First-Time Homebuyer Tax Credit…….

As a home buyer in O’Fallon MO I am sure that you have heard a lot about the first time homebuyer tax credit and may have questions about what may be available to you.

This tax credit for first-time home buyers was modified in the American Recovery and Reinvestment Act that was signed into law by President Obama on February 17, 2009.  The table below shows the modifications/changes* that were made to the original act of April 9, 2008.

 

FEATURE

CREDIT AS CREATED JULY 2008

APPLIES TO ALL QUALIFIED

PURCHASES ON OR AFTER APRIL 9, 2008

REVISED CREDIT-

EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009

Amount of

Credit

Lesser of 10 percent of cost of home or $7,500

Maximum credit amount increased

 to $8,000

Eligible

Property

Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.

No change

All principal residences eligible.

Refundable

Yes.  Reduces (or can eliminate) income tax liability for the year of purchase.  Any unused amount of tax credit refunded to purchaser.

No change

Purchasers will continue to receive refund fro unused amount when tax return is filed.

Income Limit

Yes.  Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return).  Phases out above those caps ($95,000 and $170,000).

No Change

 

Same income limits continue to apply.

First-Time

Homebuyer

Only

Yes.  Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.

No change

Still available for first-time purchasers only.  Three-year rule continues to apply

Revenue Bond Financing

No credit allowed if home financed with state/local bond funding.

Purchasers who utilize revenue bond financing can use credit.

Repayment

Yes.  Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing.

No repayment for purchases on or after January 1, 2009 and before

December 1, 2009

Recapture

If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale.

If home is sold within three years of purchase, entire amount of credit is recaptured on sale.  Applies only to homes purchased in 2009.

Termination

July 1, 2009

(But note program changes for 2009)

December 1, 2009

Effective Date

Purchases on or after April 9, 2008 and before January 1, 2009.  Repayment to begin for 2010 tax year

All Revisions are effective as of

January 1, 2009

  • Major modifications are Shaded

 

In addition to the above tax credit the state of Missouri is working on an additional $1,000 credit but it has not yet been passed or signed into law.  As soon as this happens I will let everyone know.

I would also suggest that those who are looking to use this tax credit first seek the advice of a tax advisor to see how it would affect you.  Once you have checked with your tax advisor then I would suggest that you contact a lender and get pre-approved of a home mortgage to see just how much home you are able to purchase.

If you are looking for a new home and a REALTOR® that knows the St. Charles County MO marketplace and one that has called O Fallon MO home for over 15 years give me a call.  Call Don Rogers at 314-954-6775 or email me at Don@DRogersHomes.com and we can start you home buying experience today.  By the way I am never too busy for your referral, so if you know of someone that is looking to buy or sell have them give me a call, too.

 

 

 

 

Tax Time

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Don Rogers is a licensed REALTOR® in Missouri.  I specialize in St. Charles County Missouri and have called O Fallon MO my home since 1993.  If you are looking to buy or sell or you are relocating to the area and would like information about the St Charles County MO area do not hesitate to give me a call at 314-954-6775 or if you would prefer to send me an email.

 

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Show All Comments
Rainmaker
635,293
Leesa Finley
RED Properties - Wake Forest, NC
RED Properties - Raleigh NC Real Estate

i am so happy to see everyone getting this info out there to the consumers!  I love your chart - very easy to understand! 

Feb 24, 2009 08:47 AM #1
Ambassador
942,123
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Don,

I did a blog yesterday for localism in my area of Dyersburg,Tn for this information. This should help some buyers.

Feb 24, 2009 09:00 AM #2
Rainmaker
661,166
JL Boney, III
Coldwell Banker - Columbia, SC
Columbia, SC Real Estate

I still haven't posted here about the tax credit yet, and I need to get on the ball.

Feb 24, 2009 09:20 AM #3
Rainmaker
3,983,315
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

This should help people understand what the regulations are.  Now if they just stop changing them!

Feb 24, 2009 10:13 AM #4
Rainer
8,388
Jamie Boney
Mungo Homes - Columbia, SC

Thanks for the information on the tax credit, I would love to be able to use it for down payment, but it is my understanding that you can't on this one!

Feb 24, 2009 12:36 PM #5
Rainmaker
575,553
Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re

It is a great program for buyers and we need to do more to promote it on our listings.

Feb 24, 2009 03:08 PM #6
Rainmaker
631,147
Don Rogers
Keller Williams Realty Chesterfield - O'Fallon, MO
Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

Good morning Ms. Leesa,

Thank you ma'am for stopping in it is always a plrasure to hear from ya.  I hope that folks get the message that there is help when they get ready to buy.

Feb 24, 2009 11:12 PM #7
Rainmaker
631,147
Don Rogers
Keller Williams Realty Chesterfield - O'Fallon, MO
Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

Mike,

I am hoping that people get this message.  We need to help the buyers all we can.

Feb 24, 2009 11:13 PM #8
Rainmaker
631,147
Don Rogers
Keller Williams Realty Chesterfield - O'Fallon, MO
Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

JL,

What's taking you so long?  Better get it in gear my friend.

Feb 24, 2009 11:15 PM #9
Rainmaker
631,147
Don Rogers
Keller Williams Realty Chesterfield - O'Fallon, MO
Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

William,

Maybe, just maybe they have stopped with all of the changes for a little bit.  ;-)

Feb 24, 2009 11:16 PM #10
Rainmaker
631,147
Don Rogers
Keller Williams Realty Chesterfield - O'Fallon, MO
Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

Jamie,

You are right this is a tax break when filing end of the year tax returns.

Feb 24, 2009 11:17 PM #11
Rainmaker
631,147
Don Rogers
Keller Williams Realty Chesterfield - O'Fallon, MO
Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

Terry,

We need to promote this every opportunity we get.  I think that we can and should place them on our market update posts too.

Feb 24, 2009 11:18 PM #12
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