In its efforts to stimulate the economy and the housing market, Congress has enacted legislation providing a tax credit of up to $8,000 for first-time home buyers.
But time is of the essence for buyers who want to take advantage of this opportunity. Only homes purchased on or after January 1, 2009 and before December 1, 2009 are eligible.
Tax Credit at a Glance
¢ The tax credit is equal to 10% of the home’s purchase price up to a maximum of $8,000. In other words, if you buy a home with apurchase price of over $80,000, you should get the full $8,000 credit.
¢ The tax credit does not have to be repaid.
¢ The tax credit is for first-time home buyers only (first-time home buyers are those who have not owned a home in 3 years)
¢ The tax credit is available for homes purchased between January 1, 2009 and December 1, 2009.
¢ If you and your spouse make a combined income of less than $150,000 annually (or if you are single and make less than$75,000 annually), you qualify for the full $8,000 tax credit. If you make more than that, you may qualify for a partial tax credit.
¢ The tax credit is refundable. That means that if you owe no taxes, you can choose to have the government send you the $8,000 as a refund.
¢ You can elect to claim the tax credit on your 2008 return, meaning you can get the credit this year, even though you didn’t buy thehome until 2009. This may be helpful to those who know that they will make more than $150,000 combined (or $75,000 solo) in2009. (Assuming they made less in 2008). It also means you can get your $ a year earlier.
¢ If you closed on a home early in 2009 and have already filed your 2008 return, you can submit an amended return. (I recommend having a professional accountant help to make sure you do this right.)
¢ If you bought your home between April 9, 2008 and December 31, 2008, you cannot claim the $8,000 tax credit that does nothave to be repaid. You can still claim the $7,500 tax credit (interest free loan) that does have to be repaid over 15 years. Sorry, call your congress person to complain.
Please feel free to contact us contact us if you have any questions about the Tax Credit, or about buying or selling a home in Columbus, Ohio. We offer professional real estate advice and look forward to helping you achieve your real estate goals!
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