First Time Home Buyers Tax Credit.
by arbourrealty.com on February 19, 2009
There has been so much talk about the revised Home Buyers Tax Credit Bill and potential changes and effects that will most likely be put in place, that I was starting to get a little confused. Finally, it has been approved by the “powers that be”, and we now have a set in stone bill; that I most say is very favorable to those want to get their feet on the Real Estate Ladder.
The modified Home Buyers Tax Credit Bill states that first time buyers and those who have not owned a home for the last 3 years will be eligible for up to a $8000 tax credit, this credit is equivalent to 10 percent of the purchase price of the home. The home must be the buyers principal residence and purchased on or after January 1, 2009 and before December 1, 2009. The revised date of December 09 is a huge improvement to the previously stipulated July 1st 09 cut off date. The most exciting change to this First Time Home Buyers Tax Credit Bill is that this tax credit does not need to be repaid, the credit will be claimed on a tax return to reduce the purchaser’s income tax liability. I am sure many of you are wondering what happens if your tax liability is less than $8000, well good news the unused amount will be refunded as a check to the purchaser.
As always there are income restrictions, this tax credit is for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). I think that the revised First Time Home Buyers Tax Credit Bill could be a real incentive to get people motivated to make a home purchase and maybe even give this dwindling economy a little jump start.
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