| Q: A: |
How much is the tax credit? The tax credit would be $8,000 or 10% of the purchase price, whichever is less. |
| Q: A: |
Who is eligible? Similar to the $7,500 tax credit included in the Housing and Economic Recovery Act of 2008, the $8,000 tax credit (included in the 2009 economic stimulus plan) is available for the purchase of the primary residence by first-time homebuyers. |
| Q: A: |
If this is for first-time homebuyers, how
do I know if I am eligible for the tax credit? According to the IRS, any taxpayer who has not owned a home during the 3 years prior to the date of purchase can qualify for the credit. |
| Q: A: |
Do I have to repay the $8,000.? No. Unlike the previous $7,500 tax credit, the $8,000. does not have to be repaid UNLESS, the home is sold within three years of purchase; at that time, the credit will be reversed. |
| Q: A: |
Are there any income limitations on the
tax credit? Yes. The tax credit is strictly for individuals with adjusted gross income of under $75,000 or $150,000 for joint filers. |
About
the author:
Debe
Maxwell is a Charlotte
Residential Real Estate
Broker, Certified Neighborhood & Relocation Specialist, ABR
&
e-PRO who can assist you with the purchase and/or sale of real estate
in the Charlotte NC
Metro Area.
If you're relocating to or from any other area of the
country,
Debe connects you with any member of her team of relocation
professionals in your destination or exit city of choice. The
destination service is of no cost to you! The
Maxwell House Group's
quality service guarantee puts this team far ahead of the competition;
providing unsurpassed customer service is their #1 priority!
Debe
Maxwell -- Helen Adams Realty -- 704.491.3310
(THE best Charlotte home search available - no kidding!)
Debe Maxwell, CRS/Realtor®/Broker
Broker@TheCharlotteScoop.com
Phone (704) 491-3310
great info Debe - nice and simple which is how we all like it
Hi Debe:
Thanks for the update...you are always very informative! Have a nice weekend...
Good insight Debe. Thanks for sharing with all of us.
Debe, Very nicely done. Just the right balance of information and easy to understand.
Debe,
This is a very nice overview of the program. Thanks
Even though this topic is covered over and over again there are plenty of folks who keep asking the questions. You have done a nice simple job with the questions and answers.
Debe - very nice job covering this information and thanks for sharing it.
Good job at stating the rules of the new tax credit. The simpler the better.
Great job in making this simple with the Q&As.
Great Job of stating it simply so easy to understand!
Debe - simple, yet elegant. :) Nice presentation.
nice format and the hook on the guy is pretty funny too! HA!
Debe,
Quick and to the point. Thanks,
John
We provide this link for our first time buyer prospects:
FIRST TIME HOME BUYER TAX CREDIT: www.federalhousingtaxcredit.com
Follow me on Twitter @roykelley
Debe, Great information, I have been touting this at my open houses. Can you tell me? Buyers until July 1, 2009 can use the up to 7500 pay back credit and buyers 1-1-09 to 12-21-09 can use the up to 8000 no pay back credit. With sales between January and July is it possible to apply for both? I, like you want to have the latest and greatest information for my clients. BTW I loved your explanation.
Hi Debe ! Good Summary ! ... going to Mickey & Mooch's this weekend ????
Cheers !
Sheldon
Debe, so easy and to the point! I love it! I think I will reblog it for my first-time buyer readers ~ have a great weekend!
Brief, to the point and hopefully to the consumers!!! Here's to a great 2009 in real estate. Thanks Debe, always interesting to read you. Terrylynn
Debe your message is on the money. I believe a good many Realtors have put this one in their
pocket, but it's always nice to have a review for those who have not.
Debe! Easy reading for the First Time Home Buyer. Great information, concise and to the point. Thank you! Have a great rest of the weekend!
Hi All! Thank you so much for your comments and support--as always! Once again, I'm posting and RUNNING out the door to do something work-related, then getting in late and trying to comment on as many of your blogs as I can before turning in!
This tax credit post was simplified as I have been on a run of first-time home buyers this month and almost every one of them asks me about this benefit. I thought if I could shoot a link to a post with FAQ, then I'd be a step-ahead.
As for the question, Karen, they can qualify for one or the other but, not both. I'm all for the $8K and staying 3 years so they don't have to pay it back!
Sheldon: I just HAD to come back and say that you won't believe this! WHILE you were writing your comment here, I WAS at Mickey & Mooch!!!! I did not take any photos but, did speak with the manager who asked me to re-send him my 'articles' on the place! You BET I did too! We'll see if that gets me that free steak! I had scallops, shrimp ant talapia this evening and they were DIVINE!
Have a wonderful Sunday!
Thanks for the simple, direct Q & A style. It was very helpful. Best,
Nice Breakdown, simple and easy to understand.
Great Information and simple to understand! Thanks Debe.
It's nice to have the info put together so simply. Thank you for that! Do you happen to know if first time buyers who are doing FHA financing with a non-owner occupant parent co-buyer can qualify for the credit? I haven't seen this addressed anywhere and would think if the parents own a home they would not qualify. Yet I heard on a radio show yesterday that the child would qualify. Anyone know the truth on this or where I could find out for sure?
this is great stuff. I was stopped in church today by a business owner and I was glad I could answer all his questions. thanks a million.
Hi Debe!
Thank you for the input. Even I can understand it.
Kieran and Cecelia
Debe,
Thanks for the information on the tax credit. I have a question. My buyer is qualified for the tax credit but his fiance is not, as she purchased a home in November 2006. If they get married is my client then disqualified and does he need to return the money?
I'd aappreciate hearing from anyone who has the answer or has worked with a client in a similar situation.
Dennis
Thanks ALL! As for the question that Dennis has--perhaps a lender could pitch in here but, it would be my understanding that if Closing is to occur before the marriage and the Deed in the man's name, then there should be no issue. I would definitely check with your lender before moving forward with the transaction--as I am not the expert in this program!
Debe,
Fortunately, the tax credit is not a deal breaker for my buyer but it could be a nice wedding present and/or could help pay for some updates to the house.
Dennis
Hi Debe, This is a nifty little format. Q & A is so staightforward.
Dennis: Glad to hear that--you're right, it would make a GREAT wedding gift!
Marian: Thanks--it's easy to find your answer, isn't it?!
Debe,
Thank you for this wonderful post!!!!! Simple, succinct and informational!!!!! Very much re-blog worthy!
Lori Cofer REALTOR
Pullman WA
This is good info for people to know. I work with a lender who also tells me that the tax credit can be applied to down payment & closing costs. I'm not sure to what degree, but if it lowers the buyers out of pocket to close, this is great. He tells me that because it is a tax credit, that the funds are considered "seasoned" & that is why they can be used towards their down payment. Kool. Feel free to e-mail me with any more questions if you wold like. CraigsHouseDeals@yahoo.com
Debe: Thank you. Two points. One, encourage everyone to do their taxes now. They'll need their refund money for their down payment. Two, the tax refund is for the period from January 1, 2009-December 1, 2009. Anyone who did a purchase before this is subject to the old rules (7500 credit that needs to be paid back over 15 years). Thanks for the post! I appreciate it.