- Find a Real Estate Professional
- Arlington Realtors®
- Arlington Mortgage Lenders
- Arlington Home Improvement Pros
- Arlington Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Realtor® Advertising
- Join the Professional Directory
Replies (22)
- Roberto Ribas, "azrob"
- Contributions:10236
you left out that it must be a first time buyer. (not owned property for three months)
- Roberto Ribas, "azrob"
- Contributions:10236
ooops three years... too much wine!
- Nathan Wolf, "natewolf"
- Contributions:1808
1. Qualifying for the homebuyer credit
The credit is for first-time homebuyers only. As it relates to this credit, a first-time homebuyer is defined as any taxpayer who has not owned a principal (or main) residence for a period of three years prior to the home purchase. The first-time purchase must be of a principal residence.
The credit is for first-time homebuyers only. As it relates to this credit, a first-time homebuyer is defined as any taxpayer who has not owned a principal (or main) residence for a period of three years prior to the home purchase. The first-time purchase must be of a principal residence.
- Nathan Wolf, "natewolf"
- Contributions:1808
2. Income limitations
The legislation does limit availability of the first-time homebuyer credit based on modified adjusted gross income (MAGI). Single filers with MAGI of $75,000 or less and married couples with MAGI of $150,000 or less are eligible for the full $8,000 credit. Those individuals or couples with MAGI above these limits may be available for a reduced credit on a phase-out basis.
The legislation does limit availability of the first-time homebuyer credit based on modified adjusted gross income (MAGI). Single filers with MAGI of $75,000 or less and married couples with MAGI of $150,000 or less are eligible for the full $8,000 credit. Those individuals or couples with MAGI above these limits may be available for a reduced credit on a phase-out basis.
- Nathan Wolf, "natewolf"
- Contributions:1808
3. Purchase window
The 2009 first-time homebuyer tax credit is retroactive to January 1, 2009 and covers purchases through November 30th, 2009.
The 2009 first-time homebuyer tax credit is retroactive to January 1, 2009 and covers purchases through November 30th, 2009.
- Nathan Wolf, "natewolf"
- Contributions:1808
4. Refundable credit
The tax credit reduces your final tax liability and you will be refunded whatever portion, if any, of the credit that remains after applying the credit to taxes you owe for that year. For example, let's say you qualify for the full $8,000 homebuyer credit and your total tax liability (after withholding) is $2,000. Your tax liability will be zero, and you will receive a refund for the remaining $6,000.
The tax credit reduces your final tax liability and you will be refunded whatever portion, if any, of the credit that remains after applying the credit to taxes you owe for that year. For example, let's say you qualify for the full $8,000 homebuyer credit and your total tax liability (after withholding) is $2,000. Your tax liability will be zero, and you will receive a refund for the remaining $6,000.
- Nathan Wolf, "natewolf"
- Contributions:1808
5. Claiming the credit
Claiming the credit is actually very simple. To take advantage of the first-time homebuyer credit, you'll need to complete IRS Form 5405 which will help determine the tax credit amount. You'll then claim that amount on line 69 of your 1040 tax return form. No pre-approval forms or applications are required!
Claiming the credit is actually very simple. To take advantage of the first-time homebuyer credit, you'll need to complete IRS Form 5405 which will help determine the tax credit amount. You'll then claim that amount on line 69 of your 1040 tax return form. No pre-approval forms or applications are required!
- Nathan Wolf, "natewolf"
- Contributions:1808
Repayment
While the credit is equivalent to 10 percent of the purchase price of the home, the 2009 credit increases the limit of the credit from $7,500 to $8,000.
The 2009 homebuyer credit DOES NOT require repayment. Repayment of the credit is only required if the owner sells the property within three years of purchase.
Credit AmountWhile the credit is equivalent to 10 percent of the purchase price of the home, the 2009 credit increases the limit of the credit from $7,500 to $8,000.
- lori_c
- Contributions:2
Question. If my husband&I live in a mobile home (singlewide), which is in my name, can we get this credit? I've seen different answers on this. I know that singlewides are treated in some cases (legally) as motor vehicles. I didn't know if that would have any bearing on this issue. Thanks..
- Nathan Wolf, "natewolf"
- Contributions:1808
You can read about it at the IRS website. It's form 5405.
LoriC: There are two issues you have. 1. Mobile home, is it a home or a vehicle. This is defined usually by the determination of whether the wheels have been removed and the home has been permanently attached to the ground. If that case, it is considered Real Property and not a vehicle (personal property). 2. Even if the property is in your name and the MH is considered a house and not a vehicle, your husband may still qualify for 1/2 of the credit if you were to purchase a new home. In this case, you really need to contact your tax accountant who can help to determine your specific qualification for the credit.
Samjay18: Is the Rehab Loan for a PURCHASE of a Primary Residence, and are you a first time home buyer who makes less than $75k annually (higher for married couples filing jointly)? If yes, then you most likely qualify.
- lori_c
- Contributions:2
Thanks for the reply. I suppose now I need to find out if siding (which we have) vs. brick makes a difference in determining whether or not my singlewide makes it permanent. Either way, thank you for the advice.
Another question, can you 'double dip' from the gov't: get a USDA loan (funded, not guaranteed) and claim credit? If not, which downpayment assitance program did your client use? I'm near Piedmont Triad&looking to buy in this area.
Another question, can you 'double dip' from the gov't: get a USDA loan (funded, not guaranteed) and claim credit? If not, which downpayment assitance program did your client use? I'm near Piedmont Triad&looking to buy in this area.
- Nathan Wolf, "natewolf"
- Contributions:1808
The $8000 Tax Credit is not determined by the type of loan. Even if you paid cash, you could qualify. So, double-dip away.
The down payment assistance is from the North Carolina Housing Finance Agency. There are approved lenders listed on their site. You can contact them directly with your questions and get the real answers based on your specific property and circumstances.
- Susan S.
- Contributions:2
You mentioned that Lori C.s husband may qualify for half of the benefit. I had that question too. My divorce has just become final. I am a joint mortgage holder with my husband, on the house we shared which is being sold as a result of the divorce. I have never purchased a house on my own. Would I be eligible for this benefit at all?
Susan S
Susan S
- Nathan Wolf, "natewolf"
- Contributions:1808
You need to ask your accountant. It would be my understanding that since you and your (ex)husband owned the home, you would not be eligible for the tax credit. It is for persons who have not owned in the past three years, or have never owned.
- ChristyAnnH
- Contributions:4
I am disabled and because of my Social Security Disability income being non taxable am I eligible for this credit??
- Michael Emery, "MikeEmery"
- Contributions:6886
Christy - If you are able to get a loan or can pay cash, you can get the credit.
someone with no taxable income who qualifies as a first-time homebuyer may file for the sole purpose of claiming the credit for a refund.IRS
You would file a 1040 then get 10 percent of the purchase price up to $8,000.
someone with no taxable income who qualifies as a first-time homebuyer may file for the sole purpose of claiming the credit for a refund.IRS
You would file a 1040 then get 10 percent of the purchase price up to $8,000.
- ChristyAnnH
- Contributions:4
Thanks, that lightens my load! One more thing... I was told you don't have to wait to file your taxes to get the check... is that correct?? If I buy a house this year will I have to wait till next year when I file taxes to get my refund??
~C
- Michael Emery, "MikeEmery"
- Contributions:6886
If you are going to buy and close prior to April 15th 2010, it's best to file the tax credit along with your 2009 taxes. It's just alot faster.
Otherwise you can amend your 2009 taxes after you have filed them to collect the credit. This process is slower as the IRS hand reviews amended returns and if you make a mistake it gets kicked back to you. You would use a 2009 1040x form and a 2009 5405 First Time Homebuyers Credit. Both are or will be available soon on the IRS website. (IRS.gov)
Otherwise you can amend your 2009 taxes after you have filed them to collect the credit. This process is slower as the IRS hand reviews amended returns and if you make a mistake it gets kicked back to you. You would use a 2009 1040x form and a 2009 5405 First Time Homebuyers Credit. Both are or will be available soon on the IRS website. (IRS.gov)
- ChristyAnnH
- Contributions:4
Thanks again for the help!!
~C
~C
- karbonator
- Contributions:3
Seriously folks, who really believes this is a good deal? A $8000 tax credit really just means that all houses are $8000 overpriced right now, so you are not saving anything.
Also, by the time the program is over (in April) the market will deflate even more and we will see even steeper price drops in more or less all markets across the country.
Foolish incentives like this are only populistic attempts to halt the price drops that are doomed to happen. Unemployment rate is through the roof and rising, foreclosures completely out of hand, and many people are way under water on their mortgages.
People need to wake up and not drink the cool-aid realtors here are feeding. Prices will drop at least another 10-20% before we see any kind of recovery!
Also, by the time the program is over (in April) the market will deflate even more and we will see even steeper price drops in more or less all markets across the country.
Foolish incentives like this are only populistic attempts to halt the price drops that are doomed to happen. Unemployment rate is through the roof and rising, foreclosures completely out of hand, and many people are way under water on their mortgages.
People need to wake up and not drink the cool-aid realtors here are feeding. Prices will drop at least another 10-20% before we see any kind of recovery!
- ChristyAnnH
- Contributions:4
An OPINION of ONE person! May be true, may not. WHATEVER!
Do You Qualify for the $8000 Stimulus Tax Credit?
-
- 0.0/5.0
- (no reviews)
Contributions:1808If you earn less than $75k as an individual, or less than $150,000 as joint filers on your tax return the answer is likely YES.
If you earn over those limits do you lose all of the benefits? NO. Not necessarily. The credit starts to phase out between $75k and $95K, or between $150k and $170 on a joint return.
What if you're lower income and you don't file taxes? You still qualify. Simply file a tax return showing that you don't owe any taxes, and you can qualify for the full tax rebate in the form of a refund check sent to you. AND it doesn't have to be repaid! As long as you keep the home at least 3 years.
I actually have a married client who has qualified for exactly this situation. They qualify for down payment assistance, allowing them to get 100-percent Financing on a $95,000 loan, and they will get an $8000 check back. And based on their loan, that's nearly a full year's payments! AND, they're going to save nearly $150 off of what they were paying at their current rental apartment. And they're getting twice the space as their apartment in a two story townhome, with 4 bedrooms, 3 bathrooms, all appliances, and a 1-car garage!
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.