First time Home Buyer tax credit
Congress has finally reached agreement on the stimulus bill which the president will sign tomorrow.
The main points of the first time home buyer tax credit are
- The credit is now $8,000 (down from the proposed $15,000). This is $500 more than the last years home buyer tax credit (2008)
- Only for qualifying home purchases this year between January 1, 2009 and December 1, 2009.
- First time homebuyer will be considered as anybody who has not owned a house in the last three years.
- You must not have adjusted gross income that exceeds $75,000 (or $150,000 for married couples filing jointly).
- Full amount of credit is available to people that fall below the income level (phases out at $90,000 for single people, and $170,000 for married couples)
- If you sell the home within three years, you’ll forfeit the credit (or have to pay it back it you already claimed it).
- Eliminates the repayment requirement for the tax credit for first-time home buyers (unlike last years home buyer tax credit). This means that the home buyer tax break is a true tax deduction/credit, so will be an actual $8000 reduction on your next tax bill. If you don’t owe that much and purchased a house in the qualifying period, you get a check back from the IRS.
- All principal residences allowed, in another words no rental properties will be covered.
If you are thinking about buying a home this first time home buyer tax credit will really help you out.
For more information feel free to call me on my cell phone at (313) 310-9855 or email me at info@RussRavary.com
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