2009 First Time HomeBuyer Tax Credit … Newest Developments !!
The new developments of the 2009 First Time Home Buyer Tax Credit provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment.
Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser’s income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
Click here to see a breakdown of the qualification requirements & guidelines…or scroll below.
Please pass this along to anyone you know who’s thinking of Buying – or maybe even thinking of Selling. This credit will offer opportunities for both. More (motivated) Buyers in the market means good news for Sellers, so although the Seller wouldn’t benefit on their next home purchase, this could actually be the best time in the past year or so to get ‘on’ the market with an increase of buyers out there with new incentive. And remind married couples, if only one of the 2 are on the deed, then the other could “purchase” their next home and potentially benefit from this tax credit as well…just a thought!
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Warmest Regards,
The Kelly Sells Atlanta Team
Your Neighbors | Your Real Estate Experts
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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
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REVISED CREDIT –
EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009
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| Amount of Credit
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Lesser of 10 percent of cost of home or $7500 | Maximum credit amount increased to $8000
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| Eligible Property
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Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence. | No change
All principal residences eligible.
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| Refundable
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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.
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| Income Limit
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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.
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| First-time Homebuyer Only
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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.
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| Revenue Bond Financing
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No credit allowed if home financed with state/local bond funding. | Purchasers who utilize revenue bond financing can use credit.
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| Repayment
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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
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| Recapture
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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.
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| Termination
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July 1, 2009
(But note program changes for 2009)
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December 1, 2009
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| Effective Date
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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
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