Update to First Time Homebuyer Tax Credit
Posted 02-17-2009 at 02:57 PM by GregTraub
Well, the first 09 economic stimulus plan was signed into law today and in it was a provision that directly affects first time home buyers.
In my previous post I explained the $7500 refundable first time homebuyer credit. That credit has now been replaced by an "improved" tax credit. The new credit,while not as large as originally proposed, has been upped to $8,000 the repayment feature has been eliminated, and you can qualify for the credit if you purchase and take occupancy of your first home all the way through the end of this year.
What this means to you?? Now instead of the government giving you an interest free loan for purchasing your first home, they are now giving you $8000 outright. You cannot technically receive the credit before you purchase a home to use as a part of your downpayment (unless you find yourself a creative tax preparer), but can adjust your payroll withholdings to reflect the credit. In essence you will be taking home a larger paycheck by adjusting how much is taken out in taxes (fill out a new w-4 or other form depending on your employment status). Then use those larger pay checks to save up your downpayment!
For further details of the new credit click the link below.
http://www.floridarealtors.org/NewsA.../n1-021709.cfm
-Greg Traub
www.MyOrlandoHomeExpert.com
In my previous post I explained the $7500 refundable first time homebuyer credit. That credit has now been replaced by an "improved" tax credit. The new credit,while not as large as originally proposed, has been upped to $8,000 the repayment feature has been eliminated, and you can qualify for the credit if you purchase and take occupancy of your first home all the way through the end of this year.
What this means to you?? Now instead of the government giving you an interest free loan for purchasing your first home, they are now giving you $8000 outright. You cannot technically receive the credit before you purchase a home to use as a part of your downpayment (unless you find yourself a creative tax preparer), but can adjust your payroll withholdings to reflect the credit. In essence you will be taking home a larger paycheck by adjusting how much is taken out in taxes (fill out a new w-4 or other form depending on your employment status). Then use those larger pay checks to save up your downpayment!
For further details of the new credit click the link below.
http://www.floridarealtors.org/NewsA.../n1-021709.cfm
-Greg Traub
www.MyOrlandoHomeExpert.com
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