StreetsofSilver
New Contributor
This is a great selling feature for flipping, wholesaling, and options to create a sense of urgency to your potential buyers.
In 2008, Congress enacted a $7500 tax credit as an incentive for 1st time homebuyers. In 2009, Congress has increased the credit to $8000 and included some improvements. This $8000 tax credit applies to principal residence purchases on or after January 1, 2009 and before December 1, 2009. The home must be located in the US.
What's the new homebuyer tax incentive for 2009?
The 2008, $7500 repayable credit is increased to $8000 for 2009 and the repayment feature is eliminated. Any home that is purchased for $80,000 or more qualifies for the $8000 credit. If the house costs less than $80,000 the credit will be 10% of the cost.
So if a person buys a home for $75,000 the credit would be $7500.
Who is eligible?
Only first time homebuyers. A person is considered a first time homebuyer if they have not had any ownership interest in a home in the 3 years previous of the 2009 purchase date.
Is there an income restriction?
Yes. Individuals filing Form 1040 as Single are eligible if there income is no more than $75,000. Married couples who file a joint return can not make more than $150,000. The credit phases out between $75,000 to $95,000 for a single person and between $150,000 to $170,000 for a married couple.
What is considered a principal residence?
Owner occupied housing. This includes SFHs, condos, townhouses, and co-ops. New construction is eligible as long as the purchaser occupies the home before Dec. 1, 2009. Some houseboats and manufactured homes are considered principal residences, also.
Do 2008 purchasers still have to repay the $7500 credit?
Yes. The $7500 credit was more like an interest free loan that must be repayed over 15 years, starting in 2010.
Does the credit ever have to be repaid?
If you claim the credit, but sell the house within the first 3 years of the purchase date, you will be required to repay the credit. There are a few exceptions. This applies to both the 2008 and 2009 tax credits.
In 2008, Congress enacted a $7500 tax credit as an incentive for 1st time homebuyers. In 2009, Congress has increased the credit to $8000 and included some improvements. This $8000 tax credit applies to principal residence purchases on or after January 1, 2009 and before December 1, 2009. The home must be located in the US.
What's the new homebuyer tax incentive for 2009?
The 2008, $7500 repayable credit is increased to $8000 for 2009 and the repayment feature is eliminated. Any home that is purchased for $80,000 or more qualifies for the $8000 credit. If the house costs less than $80,000 the credit will be 10% of the cost.
So if a person buys a home for $75,000 the credit would be $7500.
Who is eligible?
Only first time homebuyers. A person is considered a first time homebuyer if they have not had any ownership interest in a home in the 3 years previous of the 2009 purchase date.
Is there an income restriction?
Yes. Individuals filing Form 1040 as Single are eligible if there income is no more than $75,000. Married couples who file a joint return can not make more than $150,000. The credit phases out between $75,000 to $95,000 for a single person and between $150,000 to $170,000 for a married couple.
What is considered a principal residence?
Owner occupied housing. This includes SFHs, condos, townhouses, and co-ops. New construction is eligible as long as the purchaser occupies the home before Dec. 1, 2009. Some houseboats and manufactured homes are considered principal residences, also.
Do 2008 purchasers still have to repay the $7500 credit?
Yes. The $7500 credit was more like an interest free loan that must be repayed over 15 years, starting in 2010.
Does the credit ever have to be repaid?
If you claim the credit, but sell the house within the first 3 years of the purchase date, you will be required to repay the credit. There are a few exceptions. This applies to both the 2008 and 2009 tax credits.
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