The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
If you haven't owned a home in 3 years — or never at all — this can guarantee you $8,000 off your taxes.
Here are the highlights of this historic move:
Limited Time Offer With Few Limitations
You must close on a new home no later than November 30, 2009, and make $150,000 or less if filing as a couple ($75,000 or less if filing single). Income over these limits may qualify for partial credit. The credit has to be repaid over time if you sell the home within 3 years of closing. Other than that, qualify for a loan and the full $8,000 credit is yours.
$8,000 Guaranteed No Matter What You Owe
A tax credit directly reduces the taxes you owe for the entire year, including what you’ve paid in. Under the new law you're guaranteed $8,000 off your taxes. If, for example, you’ve paid $6,000 and owe nothing else, you’d get an $8,000 tax refund. If you owe more, you're still guaranteed $8,000 credited against that.
You Could Claim The Credit For 2008
The tax credit applies in the year it's claimed. Close on a new home before you file your 2008 taxes, and you can claim it on your 2008 return. Already filed your 2008 tax return, you can file an amendment or wait to claim the credit on your 2009 return.
If you'd like to learn more about this program, please call me!