Mark Goedert asked:
First-time home buyers purchasing a home are eligible for the tax credit. The purchase must occur between 1/1/09 and 12/1/10. The law defines a first-time home buyer as one who has not owned a principal residence during the three-year period of time prior to the purchase. With married couples, both spouses must meet the 3-year requirement to qualify for this credit.
The credit is a refundable income tax credit. This means that if the amount of credit you claim on your 2009 income tax return is more than your tax liability, the difference is paid to you in your income tax refund.
The tax credit is equal to 10% of the purchase price of the home up to a maximum credit of $8,000. There are modified gross income requirements to be eligible for the credit; single tax payers’ limit is $75,000 and married tax payers’ limit is $150,000. The credit is reduced for tax payers whose income is higher and the phase out range is $20,000; therefore, reducing the credit to zero for those with income of $95,000 if single and $170,000 if married.
The tax credit is claimed by filling out the IRS tax Form 5405. The IRS.gov website will have details and instructions for completing this form.
Revisions to Tax Credit for 2009
There were several modifications made to the First-Time Homebuyer Tax Credit for 2009.
Amount of maximum credit increased to $8,000 Purchasers utilizing revenue bond financing are eligible for the tax credit No repayment requirements on purchases from 1/1/09 – 12/1/09. Recapture provision states if your home is sold within 3 years of purchase, the entire amount of credit is recaptured on the sale (this applies only to homes purchased in 2009) The termination date is 12/1/09 and the effective date for all revisions is 1/1/09.
Other provisions of the Stimulus Plan include:
FHA, Fannie Mae and Freddie Mac Loan Limits
Neighborhood Stabilization
Commercial Real Estate
Rural Housing Services
Low Income Housing Grants
Tax Exempt Housing Bonds
Energy Efficient Housing Tax Credits and Grants
Transportation Investments
Broadband Deployment
Maureen
First-time home buyers purchasing a home are eligible for the tax credit. The purchase must occur between 1/1/09 and 12/1/10. The law defines a first-time home buyer as one who has not owned a principal residence during the three-year period of time prior to the purchase. With married couples, both spouses must meet the 3-year requirement to qualify for this credit.
The credit is a refundable income tax credit. This means that if the amount of credit you claim on your 2009 income tax return is more than your tax liability, the difference is paid to you in your income tax refund.
The tax credit is equal to 10% of the purchase price of the home up to a maximum credit of $8,000. There are modified gross income requirements to be eligible for the credit; single tax payers’ limit is $75,000 and married tax payers’ limit is $150,000. The credit is reduced for tax payers whose income is higher and the phase out range is $20,000; therefore, reducing the credit to zero for those with income of $95,000 if single and $170,000 if married.
The tax credit is claimed by filling out the IRS tax Form 5405. The IRS.gov website will have details and instructions for completing this form.
Revisions to Tax Credit for 2009
There were several modifications made to the First-Time Homebuyer Tax Credit for 2009.
Amount of maximum credit increased to $8,000 Purchasers utilizing revenue bond financing are eligible for the tax credit No repayment requirements on purchases from 1/1/09 – 12/1/09. Recapture provision states if your home is sold within 3 years of purchase, the entire amount of credit is recaptured on the sale (this applies only to homes purchased in 2009) The termination date is 12/1/09 and the effective date for all revisions is 1/1/09.
Other provisions of the Stimulus Plan include:
FHA, Fannie Mae and Freddie Mac Loan Limits
Neighborhood Stabilization
Commercial Real Estate
Rural Housing Services
Low Income Housing Grants
Tax Exempt Housing Bonds
Energy Efficient Housing Tax Credits and Grants
Transportation Investments
Broadband Deployment
Maureen
