Final score: $8,000 for homebuyers
Note that this information is outdated.
Those who opt to purchase a home by December of this year will be able to claim a tax credit worth $8000 or up to 10% of the home’s value, whichever is less on their 2008 or 2009 taxes.According to CNNMoney.com’s a big plus is that the credit is refundable. This means that those filing taxes will see a refund of the full $8000 even if their total tax bill (the amount of withholding they paid during the year plus anything extra they had to put out when they filed their returns) was less than that amount. To qualify for the credit a home purchase must be made between 1-1-09 and 11-30-09 and buyers may not have owned a home for the past three years to qualify as “first time” buyer. These buyers must occupy the house for at least three years. If they do not they will be obligated to pay back the entire credit. There are also some income restrictions. Buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit). Applying for the credit will be as simple as claiming it on one’s tax return. No other forms or papers will need to be filed and taxpayers who have already completed their returns can file amended returns for 2008 to claim credit. Christie writes that the $8,000 credit will bring an additional 300,000 new homebuyers into the market according to estimates by Lawrence Yun chief economist for the National Association of Realtors and could also create a domino effect he said because each first-time homebuyer sale may lead to trade-up transactions down the line.
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