Sonia Less asked:
The first time homebuyer stimulus is a recently approved Tax Credit bill. The proposed $15,000 homebuyer tax credit between the House and the Senate did not prosper, but recently President Barack Obama signed into law a smaller measure to help revive the real estate market.
The tax credit for first time homebuyers is equivalent to getting a tax return of $8,000.00. This works great if you do not owe any money from the government and you usually get a tax return. When you purchase a home for the first time, the government is going to send you a tax refund of $8,000.00.
This is only good for the year 2009, so if you are planning to buy a home, do it now to avail of this tax credit refund.
Who can qualify for this? Below is some further information of the First Time Home Buyer Stimulus Tax Credit.
1. All US Citizens who file for taxes can qualify. First time homebuyers mean that he or she has not owned a residence for at least three years before purchasing a house. The date of transfer is considered the actual date of purchase.
2. Only homebuyers who purchase a home between January 1 and December 1, 2009 can qualify for the credit. Those who purchase a home before the specified date will not be able to avail of it.
3. The home purchased must be used as the main or principal residence. This includes all kinds of houses such as townhouses, single-family detached homes, manufactured homes or mobile homes, condominiums and houseboats. The home buyers must live in the home for the next three years to fully take advantage of the tax credit.
4. The cost of the home should be at least $80,000.00 or more. According to the plan, a homebuyer receives ten percent of the home purchase. To receive the full $8,000.00 credit, the home should be bought for $80,000 or above. Married couples who file separately will receive a maximum of $4,000.00.
5. The tax credit has income limits attached to it. To qualify for the full credit, single buyers must have a gross income of $75,000.00 or less and $150,000.00 or less for married ones. Those earning more may qualify only for reduced credits.
6. The tax credit is refundable, so buyers can take full advantage of it even if they have lesser tax liability.
7. In order to capitalize on the credit, buyers have to maintain ownership of the home for at least three years. This means that you do not sell your home within those years. If you do sell before the three-year term is up, then you have to return the credit back to the government. There are exceptions however, such as divorce or death.
If you qualify, you can claim for the tax credit when you file your income tax return. For the tax credit, you can claim when you file your income tax return. Take into consideration that when you purchase a home this year, you will only see it reflected after you file your income tax in April 2010.
Jeanette
The first time homebuyer stimulus is a recently approved Tax Credit bill. The proposed $15,000 homebuyer tax credit between the House and the Senate did not prosper, but recently President Barack Obama signed into law a smaller measure to help revive the real estate market.
The tax credit for first time homebuyers is equivalent to getting a tax return of $8,000.00. This works great if you do not owe any money from the government and you usually get a tax return. When you purchase a home for the first time, the government is going to send you a tax refund of $8,000.00.
This is only good for the year 2009, so if you are planning to buy a home, do it now to avail of this tax credit refund.
Who can qualify for this? Below is some further information of the First Time Home Buyer Stimulus Tax Credit.
1. All US Citizens who file for taxes can qualify. First time homebuyers mean that he or she has not owned a residence for at least three years before purchasing a house. The date of transfer is considered the actual date of purchase.
2. Only homebuyers who purchase a home between January 1 and December 1, 2009 can qualify for the credit. Those who purchase a home before the specified date will not be able to avail of it.
3. The home purchased must be used as the main or principal residence. This includes all kinds of houses such as townhouses, single-family detached homes, manufactured homes or mobile homes, condominiums and houseboats. The home buyers must live in the home for the next three years to fully take advantage of the tax credit.
4. The cost of the home should be at least $80,000.00 or more. According to the plan, a homebuyer receives ten percent of the home purchase. To receive the full $8,000.00 credit, the home should be bought for $80,000 or above. Married couples who file separately will receive a maximum of $4,000.00.
5. The tax credit has income limits attached to it. To qualify for the full credit, single buyers must have a gross income of $75,000.00 or less and $150,000.00 or less for married ones. Those earning more may qualify only for reduced credits.
6. The tax credit is refundable, so buyers can take full advantage of it even if they have lesser tax liability.
7. In order to capitalize on the credit, buyers have to maintain ownership of the home for at least three years. This means that you do not sell your home within those years. If you do sell before the three-year term is up, then you have to return the credit back to the government. There are exceptions however, such as divorce or death.
If you qualify, you can claim for the tax credit when you file your income tax return. For the tax credit, you can claim when you file your income tax return. Take into consideration that when you purchase a home this year, you will only see it reflected after you file your income tax in April 2010.
Jeanette
