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Answers (6)
- Tony Croft, "tonycroft"
- Contributions:5
Here are some quick questions and answers about the tax credit.
What is the home buyer tax credit? It is a tax refund for 10% of a primary home's purchase price (up to $8K).
Who is eligible to receive the credit? First-time home buyers and those who have not owned a principal residence in the last three years prior to purchase. See the IRS website for more detail.
Do income limits apply? Yes! The full amount is given to individuals who make up to $75K and married couples who make up to $150K per year (adjusted gross annual income). The credit amount phases out between $75K and $95K for individuals; $150K and $170K for joint filers.
If you want to take advantage of the home buyer tax credit, you need to act fast! Keep in mind it's typically 45-60 days to close on a traditional real estate transaction (short sales can take much longer).
For the whole story check out my blog, $8K Home Buyer Tax Credit
What is the home buyer tax credit? It is a tax refund for 10% of a primary home's purchase price (up to $8K).
Who is eligible to receive the credit? First-time home buyers and those who have not owned a principal residence in the last three years prior to purchase. See the IRS website for more detail.
Do income limits apply? Yes! The full amount is given to individuals who make up to $75K and married couples who make up to $150K per year (adjusted gross annual income). The credit amount phases out between $75K and $95K for individuals; $150K and $170K for joint filers.
If you want to take advantage of the home buyer tax credit, you need to act fast! Keep in mind it's typically 45-60 days to close on a traditional real estate transaction (short sales can take much longer).
For the whole story check out my blog, $8K Home Buyer Tax Credit
- Jeanne Feenick, "www.feenick.com"
- Contributions:350
The maximum credit is $8,000 if you earn less than $75,000, or as a couple less than $150,000. If you earn more, you may qualify for a lesser amoung. Unlinke the prior $7,500 credit, this one does not have to be repaid. It is a tax credit - you apply on your tax return, it is not money that factors into the closing of your purchase.
You qualify if you are a first time buyer or have not owned a home in the last three years and you buy between Jan 1 and Dec 1, 2009. To keep out speculators, you must live in the home as your primary residence for a period of 3 years, if not, then the credit must be repaid.
Hopefully the attraction of this tax credit will motivate First Time Buyers to make purchases during 2009 and loosen up the bottleneck in the market.
You qualify if you are a first time buyer or have not owned a home in the last three years and you buy between Jan 1 and Dec 1, 2009. To keep out speculators, you must live in the home as your primary residence for a period of 3 years, if not, then the credit must be repaid.
Hopefully the attraction of this tax credit will motivate First Time Buyers to make purchases during 2009 and loosen up the bottleneck in the market.
- MccQbert
- Contributions:1
The dates I've been reading are mostly saying January 1 - December 1, 2009, although I also saw January 1 - November 30, but either way I don't think it's January 1 - December 31 (weird, I know).
- Oliver Indra, "OliverIndra"
- Contributions:58
It's 8000 USD, which you don't have to pay back. You have to be a First Time Homebuyer as well as buying between January 1st and December 31st 09 and you will get the money back the next time you claim taxes.
Good luck
oliver
Good luck
oliver
only for first time buyers, it is just being signed into law right now. will be $8000 now is my understanding.
You claim it by filing taxes, I'm sure turbotax etc will have it built in by the time you file.
You claim it by filing taxes, I'm sure turbotax etc will have it built in by the time you file.
- Rania Bibi, "RaniaBibi"
- Contributions:34
This is for FIRST time home buyers as an incentive. Speaking to your accountant would be the best resource. Have you started looking for homes?
How do you claim the tax credit is it 7500 or 15000? IM so confused and how do you apply for it?
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