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How to Qualify for the $8,000 First Time Home Buyer Credit
Posted 09-27-2009 at 07:22 PM by dheeruyadav
Under the American Recovery and Reinvestment Act of 2009 enacted by congress, also known as the stimulus package, first-time home buyers can claim a tax credit worth $8,000 (or 10% of the home’s value, whichever is less) on their 2008 or 2009 tax returns. Understanding the terms of the act is the key to receiving the tax credit. Learn what is required to qualify for this tax credit and the specific criteria applicants must meet to receive the $8,000 tax credit.
Instructions
The IRS defines a First Time Home Buyer is as anyone who has not owned a home (principal residence) in three years. So, technically, many home buyers who can file for the first time home buyer credit will not be first time home buyers at all!
The home purchase must be for a principal residence – either a new home or a resale. All types of homes qualify for the first time home buyer credit, including single-family detached homes, condominiums, townhomes, manufactured homes, mobile homes, and even houseboats.
The home purchase must be made between Jan. 1, 2009 and Nov. 30, 2009 to qualify for the tax credit. The purchase date refers to the date of the real estate closing.
The home buyers’ income must be less than $75,000 for singles, or $150,000 for couples who file joint tax returns. For those home buyers who earn more than these amounts, a partial credit may be given.
The tax credit does not have to be repaid. However, if a home buyer receives the tax credit, he must stay in the home for three years or risk paying a portion or the full amount back to the IRS.
See the resource links below for more helpful information regarding the First Time Home Buyer Tax Credit and the stimulus package.
Instructions
The IRS defines a First Time Home Buyer is as anyone who has not owned a home (principal residence) in three years. So, technically, many home buyers who can file for the first time home buyer credit will not be first time home buyers at all!
The home purchase must be for a principal residence – either a new home or a resale. All types of homes qualify for the first time home buyer credit, including single-family detached homes, condominiums, townhomes, manufactured homes, mobile homes, and even houseboats.
The home purchase must be made between Jan. 1, 2009 and Nov. 30, 2009 to qualify for the tax credit. The purchase date refers to the date of the real estate closing.
The home buyers’ income must be less than $75,000 for singles, or $150,000 for couples who file joint tax returns. For those home buyers who earn more than these amounts, a partial credit may be given.
The tax credit does not have to be repaid. However, if a home buyer receives the tax credit, he must stay in the home for three years or risk paying a portion or the full amount back to the IRS.
See the resource links below for more helpful information regarding the First Time Home Buyer Tax Credit and the stimulus package.
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