First time home Buyer tax credit expires soon!!!
03 September 09 08:37 PM | SIAN SINCLAIR | 0 Comments   

 First-Time Homebuyer $8,000 Tax Credit

IT EXPIRES SOON!!!

The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 prior to December 1st.

At a glance:

·         Applies to purchases that CLOSE after 4/08/2008 and by 11/30/2009

·         Applies only to homes used as a taxpayer’s principal residence

·         Reduces a taxpayer’s tax bill or increases his/her refund, dollar for dollar

·         Is fully refundable, meaning that the credit will be paid out to eligible taxpayer’s, even if they own no tax or the credit is more than the tax owed

·         Certain restrictions and eligibility requirements apply

First-time homebuyers represent a significant portion of existing single-family home sales. The expansion in the first-time homebuyer credit will make it easier for first-time homebuyers to enter the housing market this year.

For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.

The previous tax credit had a limit of $7,500 and had to be repaid. The new tax credit has a limit of $8,000 and does not… free money!

You do not have to repay the credit, provided the home remains your primary home for 36 months after the purchase date.

Qualifying tax payers who purchase a home before December 1st receive up to $8,000, of $4,000 for married individuals filing separately.

You are eligible for the credit in your 2008 taxes if you filed and extension.

If you have already filed 2008 returns, you can follow up with an amended return to claim the credit this year.

You can claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return. This will benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 because of factors such as a job loss or drop in investment income.

The amount of the credit begins to fade out for taxpayers whose modified adjusted gross income is more than $75,000.00 or $150,000.00 for joint filers. Taxpayers can claim 10% of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

Sian Sinclair

Realtor/Keller Williams Realty Peachtree rd

(404) 564-5246

http:www/buckheadtownhomes.com

First time Homebuyer tax credit- applicable to homes purchased in 2008 and 2009*
06 March 09 02:18 PM | SIAN SINCLAIR | 0 Comments   

FIRST-TIME HOMEBUYER TAX CREDIT
As Modified in the American Recovery and Reinvestment Act
Major Modifications Italicized
February 2009

FEATURE

CREDIT AS  CREATED JULY 2008

APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER

APRIL 9, 2008

REVISED CREDIT -

EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1,- 2009- AND BEFORE

 

 DECEMBER 1, 2009

Amount of
Credit

Lesser of 10 percent of cost of home or
$7500

Maximum credit amount
increased to $8000

Eligible Property

Any single family residence (including
condos, co-ops, townhouses) that will
be used as a principal residence.

No change
All principal residences eligible.

Refundable

Yes. Reduces (or can eliminate)
income tax liability for the year of
purchase. Any unused amount of tax
credit refunded to purchaser.

No change
Purchasers will continue to
receive refund for unused amount
when tax return is filed.

Income Limit

Yes. Full amount of credit available for
individuals with adjusted gross income
of no more than $75,000 ($150,000 on
a joint return). Phases out above
those caps ($95,000 and $170,000).

No change

Same income limits continue to
apply.

First-time
Homebuyer
Only

Yes. Purchaser (and purchaser's
spouse) may not have owned a
principal residence in 3 years previous
to purchase.

No change
Still available for first-time
purchasers only. Three-year rule
continues to apply.

Revenue Bond
Financing

No credit allowed if home financed
with state/local bond funding.

Purchasers who utilize revenue bond financing can use credit.

Repayment

Yes. Portion (6.67% of credit or $500)
to be repaid each year for 15 years,
starting with 2010 tax filing.

No repayment for purchases on
or after January 1, 2009 and
before December 1, 2009

Recapture

if home sold before 15-year repayment
period ends, then outstanding balance
of repayment amount recaptured on
sale.

If home is sold within three years
of purchase, entire amount of
credit is recaptured on sale.
Applies only to homes purchased
in 2009.

Termination

July 1, 2009
(But note program changes for 2009)

December 1, 2009

Effective Date

Purchases on or after April 9, 2008 and
before January 1, 2009. Repayment to
begin for 2010 tax year.

All revisions are effective as of
January 1, 2009

Sian Sinclair
REALTOR®
Keller Williams Realty-Peachtree Rd.

(404) 564-5246

http://www.buckheadtownhomes.com