Tax Credit - Buying a Home
$8,000 Tax Credit Now Available
First Time Homebuyers and Others Qualify
The "American Recovery and Reinvestment Act of 2009," passed the House and Senate on Friday, February 13, 2009 and was signed into law by President Obama on February 16, 2009.
An $8,000 tax credit (NOT a loan) is now available to many homebuyers.
Quick Facts - Homebuyer Tax Credit
- Homebuyer must be a first time homebuyer OR have not owned a home for the past 3 years
- Purchase must be for a principle residence (no investment homes)
- Home must be purchased on or after January 1, 2009
- Does not require repayment as long as homebuyer stays in the home at least 3 years.
- Applies towards single family detached homes, condos, and townhomes.
- Income cannot be greater than $75,000 yearly for a single buyer, or $150,000 yearly for a married couple.
- Credit is for $8,000 or 10% of purchase price, whichever is less.
The credit is only available for a limited time.
What Does a Tax Credit Mean?
The credit reduces your tax liability, that is, the amount of taxes you are required to pay. Depending on your tax withholdings, you could get a bigger refund or owe less in taxes when you file.
For example:
If your total tax bill is $5000, you've withheld $4,000 throughout the year, and you qualify for the $8,000 tax credit, this is how your tax return might look.
$4,000 paid
-$5,000 owed
Owes $1,000.
Claim $8,000 tax credit.
Refund of $7,000.
In this case, the new homeowner would receive a check of $7,000 from the IRS after filing.
Read all the details of the bill here - most of the pertinent information is on page 24. http://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdf
Request a First Time Homebuyer Packet - Raleigh/Triangle Area
You may also be interested in:
Wake County New Home Communities
Wake County NC Property Tax Rates 2011
Build On Your Lot in Raleigh, NC
Accessible Homes NC – Accessible Builders in Raleigh
Finding Your New Home in the Raleigh Area
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Call 919-278-8070 or visit www.StantonHomes.com to find out more about new homes in the Raleigh area today.
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Great info Penny! You explained this bill well. May I reblog it?
have a great weekend!
Linda - of course! Glad to help.
This is a great post. Thanks so much.
Linda: I just reblogged your post, but I didn't do it properly and now I don't know how to fix it!