First-Time Homebuyer Credit: $8000.00
Posted by Michael Pannell on Tuesday, April 28th, 2009 at 9:43am.There's a new, refundable tax credit of up to $8,000 for the purchase of a primary residence. The credit is available to first-time homebuyers.
1. For 2009: up to $8,000, the credit does not need to be paid back.
2. "First-time" buyer means an individual who has not owned a principal residence in previous three years.
3. For 2009, the maximum credit is $8,000 (or $4,000 for married couples filing separately).
4. The credit has a very limited life-span. Individuals will need to purchase a residence after April 9, 2008, and before December 1, 2009.
5. The credit is phased out for individuals with modified adjusted gross income between $75,000 and $95,000. For married couples filing a joint return, the phase out range is $150,000 to $170,000.
How to get the Money - The IRS sends you a Check up to $8000.00
Taxpayers will be able to claim the credit on their 2008 tax return for homes purchased in 2008. For homes purchased in 2009, the IRS will allow the purchasers to file an amended 2008 return to claim the credit. For the 2009 tax credit to show up on the 2008 return, taxpayers will need to elect to treat the 2009 home purchase as if it were made on December 31, 2008. Guidance released by the IRS provides that taxpayers making this election are eligible for the higher $8,000 tax credit amount and do not need to repay the credit if they take their 2009 credit on their 2008 tax return.
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Share2 Responses to "First-Time Homebuyer Credit: $8000.00"
This is a great incentive for first time homebuyers! Coupled with the low interest rates - why not buy?
Posted on Friday, May 8th, 2009 at 9:49 AM.
Hi Mike, this is a great overview of the First Time Homebuyer Credit, we recently ran into a situation where a buyer was purchasing their first home from a relative. In checking we discovered that one of the exceptions involves buying directly from a relative, in this case the buyers elected to purchase the home even though they would not qualify for the tax credit. Thanks again, Tina
Posted on Friday, May 1st, 2009 at 12:45 PM.