The recently-passed American Recovery and Reinvestment Act includes an eight-thousand dollar tax credit to qualified buyers. This credit not only reduces a buyer's tax liability buy the credit amount, but also these persons who are first-time buyers may reap tax benefits for a large portion of the time that they own the home.
Here are highlights of the important changes which are a part of the bill:
Tax credit now stands at $8000
The home must be purchased between 01/01/2009 and 12/31/2009
There is no recapture/repayment clause for homes which are sold after 3 years of ownership.
More details include:
The $8000 credit is available to home buyers who have not purchased a home for the past three years, not just first-time buyers.
The maximum amount of the credit is $8000, or ten percent of the home purchase price, whichever figure is less.
In order to qualify, couples who are married must have an adjusted gross income should be under $150,000. People who file single, must be under $75,000. Partial credit amounts may be available to married couples with adjusted gross incomes exceeding $150,000, but less than $170,000. For singles, the amounts are over $75,000, yet under $95,000.
Home purchasers who qualify but do not intend to buy a home until the conclusion of 2009, may opt to change their tax withholdings (not exceeding the tax credit) in order to help with saving for a down payment. If the home purchase does not happen, the taxes must be paid back to the IRS.
For complete details of the new tax credits offered to home buyers as well as the impact it can have on tax liabilities, consult your tax or realty professional for input and advice.
|
