Don't miss out on the $8,000 Tax Credit!
There has been a lot of talk these days about the state of the economy and the recently passed housing stimulus package. With as much talk as there has been, it also seems as though there is just as much, if not more, confusion surrounding it. I’ve noticed that a lot of people are curious about what it could mean to them and their financial situation but have received mixed messages and are letting this opportunity pass by without taking the time to understand it.
For many Americans, including myself, reading the IRS taxes codes can feel somewhat like deciphering a cryptic message. It’s no wonder why tax accountants sleep at their office until April 15th and income tax software has found such success in simplifying deductions and getting to the point. Taxes may be confusing but the Housing Tax Credit is actually quite straight forward.
I think it’s important for everyone to get the gist of it because this truly is an incredible opportunity and can actually put (a lot) of extra cash in YOUR pocket! I’m just going to touch on the main points to give you an overview of what it’s all about.
You are eligible to receive this Tax Credit if the following applies to your situation:
- You purchase a home between January 1st & December 1st of 2009 in which you plan to live in as your primary residence.
- You are single and your income is less than $75,000 per year or are married and earn less than $150,000 per year. (Reduced credits available for those making up to $20,000 more than the income limits).
- You have not owned your primary residence within the past 3 years.
Okay so I fit the bill, now what do I get?
You will receive a tax credit for 10% of the purchase price up to $8,000. So purchasing a new home for $80,000 or more would entitle you to receive the entire $8,000.
Does the credit need to be repaid?
No. This credit does Not need to be repaid (if you live in the home for 3 years or more)
I’m already getting money back for my taxes… what does this mean for me?
Good news, you will be getting a lot more back now! The tax credit is considered “refundable” so for someone receiving money back you will also receive up to $8,000 more. On the other side, if you owe money it will reduce the amount you owe and refund the balance of the $8,000 to you. Get the picture?
When can I get my money?
If you buy a home before April 15th in 2009 you can include as part of your 2008 Tax Returns. If you purchase after April 15th you can file an amended return
and receive it in a matter of weeks. Or you can just wait until tax time rolls around in the Spring when you file your 2009 taxes to take advantage of it.
Can I apply the money as a down payment?
Sorry! This money is awarded after the fact and cannot be used as a down payment.
This is a slightly more aggressive call to action than the 2007 legislation which helped home buyers in 2008. The biggest difference is that last year’s home buyers will have to repay their credit over the next 15 years where as home buyers in 2009 will not have to.
I think this is a huge step in the right direction for our economy. If low interest rates, unbeatable housing selection and record low prices weren't enough... this tax credit makes it more attractive than ever to buy a home. Give us a call today if you're ready to get started. Date: Monday, March, 9th 2009 @ 11:43:45 AM
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