If you are a first time home buyer and are pondering the idea of purchasing a home in the next year or so, NOW IS THE TIME. Taking advantage of the $8000 tax credit!
However, there are some things you should know before doing so:
1. The term "first time homebuyer" is being defined as not having owned a home for your primary residence in the last three years. If you fall into that category then you still qualify! You may have owned some investment property, or a vacation home, but again if you haven't owned a PRIMARY residence in the past 3 years you qualify!
2. This tax credit unlike the 2008 tax credit DOES NOT have to be repaid! Wow, a gift from the government with no strings attached!!!!
3. There are some income limitations. If you have an adjusted gross income of $75,000 or more as a individual then you do not qualify. If you final jointly with your spouse then the income max would be $150,000.
4. This credit is "refundable" which means that even if you don't have a high tax liability you can still reap the benefits!
5. Read carefully, YOU MUST OWN YOUR HOME FOR AT LEAST 3 YEARS! If you sell before your three year mark then you are subject a recapture clause. There are exceptions to this such as death, divorce, etc.
6. And probably the most important, this is only for homes purchased and CLOSED in 2009. Which means you must find your home, write a contract, and close on it, putting it into your name prior to Dec 31st, 2009.
So there is not better time then now to start your search!!!
1 comment:
Great info you shared, I think a lot of people need to know these six basic stuff before using their share of the $8,000 housing incentive.
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