The new stimulus package recently passed includes an tax credit for first time home buyers. The credit is 10% of the purchase price but is capped at $8,000. The great thing about this bill is the fact you will not have to pay back the $8,000!
To be considered a first time buyer, you must be someone who hasn't owned a principal residence (meaning you lived in the home full time) for at least 3 years. So if you have only owned a second/vacation home or investment property for the last 3 years you would still qualify.
However, should you purchase a principle residence in 2009 you will have to keep the home for at least 3 years or you will be required to return the tax credit.
The previous plan included homes purchased in 2008 and 2009. This bill eliminates homes purchased in 2008 and now only applies to homes purchased between December 31, 2008 and December 1, 2009. If you purchased a home in 2009 and have already filed a 2008 return for the previous tax credit of $7500, you should file an amendment for the balance of $500.
There are also income limits or restrictions. Single persons need a modified adjusted gross income of no more than $75,000 and married couples no more than $150,000. If you look at line 37 at the bottom of the first page of your 1040 tax return you will see a line that states adjusted gross income. This is the figure that will be utilized.
Finally, even if you do not have a lot of taxable income you are not omitted from the tax credit and may still be eligible.
There is also a section in the Stimulus Plan addressing homeowners who are currently in trouble making their mortgage payment AND, it also addresses homeowners who may feel they will have trouble in the future do to loss of income and thus have high debt to income ratios. I will address this in my next post.
To be considered a first time buyer, you must be someone who hasn't owned a principal residence (meaning you lived in the home full time) for at least 3 years. So if you have only owned a second/vacation home or investment property for the last 3 years you would still qualify.
However, should you purchase a principle residence in 2009 you will have to keep the home for at least 3 years or you will be required to return the tax credit.
The previous plan included homes purchased in 2008 and 2009. This bill eliminates homes purchased in 2008 and now only applies to homes purchased between December 31, 2008 and December 1, 2009. If you purchased a home in 2009 and have already filed a 2008 return for the previous tax credit of $7500, you should file an amendment for the balance of $500.
There are also income limits or restrictions. Single persons need a modified adjusted gross income of no more than $75,000 and married couples no more than $150,000. If you look at line 37 at the bottom of the first page of your 1040 tax return you will see a line that states adjusted gross income. This is the figure that will be utilized.
Finally, even if you do not have a lot of taxable income you are not omitted from the tax credit and may still be eligible.
There is also a section in the Stimulus Plan addressing homeowners who are currently in trouble making their mortgage payment AND, it also addresses homeowners who may feel they will have trouble in the future do to loss of income and thus have high debt to income ratios. I will address this in my next post.
Posts
No comments:
Post a Comment