Monday, 10 August 2009 14:41
by
Chuck
In 2008, the Housing and Economic Recovery Act was passed, which allows a tax credit of 10% of the purchase price of the home, up to $7,500, for any first-time homebuyer, who purchases a home prior to December 31st, 2008. This program was enhanced for homebuyers who purchase a home in 2009 prior to December 1st and, unlike the previous version that had to be repaid, this credit (10% or $8,000 for 2009) is available without repayment as long as you occupy the home for 36 months after the date of purchase. Here are some additional points to consider:
1. First Time Homebuyer – this is defined as anyone that has not owned a home during the 36 months prior to the purchase date.
2. Credit Amount – is 10% of the purchase price of the home up to a maximum of $8,000.
3. Income limits – the full credit amount is available to individuals whose modified adjustable gross income is $75,000 or less and married couples (filing jointly) whose modified adjustable gross income is $150,000 or less. If you earn more than these limits, a reduced credit may still be available.
4. Tax Credit – you will need to file Form 5405, available on the IRS website (www.irs.gov), along with your 2009 tax return, or you can actually file an amended 2008 return to get your money even sooner.
There are a variety of scenarios with this program, so additional details and FAQ’s are available at www.irs.gov For potential homebuyers, the time to purchase a home has never been better. The combination of government tax incentives, oversupply of homes available and great interest rates are persuading many members to go ahead and get preapproved and purchase a new home in 2009. Let us know how we can help…call or apply online today!