$8,000 incentive for first-time home buyers!
February 26, 2009 by Admin · Leave a Comment
The federal government is really pushing home buying incentives right now! It was recently announced that first time home buyers would be eligible for an $8,000 tax credit if they purchased a home in 2009.
How it Works:
Any first-time home buyer who purchases a home between January 1, 2009 and November 30 , 2009 may be eligible for a tax credit of $8,000 or 10% of the purchase price, whichever is lower. This is considered a TAX CREDIT, not a TAX DEDUCTION
Tax Credit vs. Tax Deduction:
Last year you may recall part of the Bush Administration stimulus package included a $7,500 tax deduction. The credit REPLACES the deduction. The difference is that the deduction had to be re-payed, interest free, over 15 years. The credit MAY not need to be repaid, but I’ll get to that in a moment.
Eligibility:
In order to qualify, here are the criteria:
- You must be a first-time home buyer.
- You must make less that $75,000 on your tax returns, or less that $150,000 on a married joint filing.
- The credit is for 10% of the purchase price, UP TO $8,000.
- You cannot buy the home from a close relative. (sibling, parent, grandparent, spouse, etc.)
- The home MUST be your primary residence for the first year you own it.
- You MAY NOT resell the home for 3 years. If you do, you are required to re-pay the credit.
- If you are married, BOTH SPOUSES must be considered first-time home buyers.
- If you are a non-resident alien, you may NOT qualify.
- The purchase date must be between January 1, 2009 and November 30 , 2009.
When Can You Claim The Credit?
The $8,000 tax credit can be claimed for your 2008 tax year (filed by April 15th 2009), 2008 amended return or 2009 tax year.
Sources:
HR 1, American Recovery and Reinvestment Act
HR 3221: Housing Economic and Recovery Act of 2008
~Jonathan Benya- Realtor
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