Thursday, March 12, 2009

Tax credit for 1st time buyers

To clear up confusion about the 2009 tax credit...

Who can claim the credit?  1st time home buyers

Who are 1st time home buyers? 1.  You bought a home in the USA between Jan 1 & Dec. 1.
 2.  You (and your spouse) did not own any other main home during the 3-year period ending on the purchase date.  3.  If you constructed your home, you are treated as having purchased it on the date you first occupied it.

Main Home:  Your main home is the one you live in most of the time. It can be a house,        houseboat, house trailer, cooperative apartment, condo, or any other type of residence.

Credit Allowed to claim?  10% of the purchase price up to a cap of $8,000.00

Are there income limitations?  Yes... Gross income for up to $75,000 (singles) and 
$150,000 (married filing jointly).

Must I repay the money?  Only if your home ceases to be your main home with-in a 36-month beginning on the purchase date. 

What if I buy a home after I already filed my income taxes?  You have 36-months to file for this credit.


 
                                                   Remember... this pertains to 2009 purchases ONLY!


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