The Federal Tax Credits Blog

Posts Tagged ‘mortgage’

Question: What is the first time home buyer $8000 tax credit all about?

I am thinking of buying a home by the end of the year. Can someone explain what this $8000 First time home buyer tax credit means exactly??

Answer: Congress has improved this plan from the first version that came out last year. Most of the mechanics of the credit will be the same as under the 2008 rules:
•The credit will be claimed on a tax return to reduce the purchaser’s income tax liability.
•If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

Congress Improves Homebuyer Tax Credit
•The credit amount is increased from $7500 to $8000.
•The credit continues to apply only to first-time homebuyers.
•Changes are effective for purchases on or after Jan 1, 2009 and before Dec 1, 2009.
•2009 purchasers can make an election to claim the credit on their 2008 tax return.
•The credit is refundable. The amount of the refund is computed as part of the 1040 tax return filing.
•The unpopular repayment feature of the 2008 version is eliminated for 2009 purchasers. Unfortunately, eligible 2008 purchasers will still be required to repay the credit.
•While the repayment is eliminated for 2009, any credit that is taken for 2009 will be recaptured and paid to the IRS from sales proceeds if the residence is sold within three years of the date of purchase.
•DC homebuyers are eligible for the $8000 credit (In 2008, DC homebuyers had a separate, nonrepayable $5000 tax credit available to them that had already been in effect for several years.)
•Purchasers who finance their 2009 purchases with funds from a state/local housing bond authority will be eligible for credit.

Mortice Limited – Interim Results

Mortice Limited – Interim Results

$8,000 Tax Credit (Spanish Version)

Question: 8000 tax credit 1st home buyer?

I am a potential first time home buyer and would like someone to help me understand this 8k tax credit. I already filed taxes so this 8k refund will be on my 2010 return if I purchase before 11/30? or When purchasing a house this 8k is usable and if I added 5k I would have put down 13k on the house?

Answer: What a GREAT deal! You can AMEND your 2009 return to get the credit if you buy soon, or you can wait until next year.
You get the money WHEN you file your return, so you have already closed in most cases. Good thing is to put ALL or most of the money down as additional principal payments on your loan, which can greatly reduce the amount of interest you pay over the life of the loan and shorten repayment time.

YOUR PLACE TO CALL HOME: It’s back to business in 2010

“It’s back to business in 2010″ was my message to the members of my St. Charles County Realtor family who gathered Nov. 20 at Whitmoor Country Club to celebrate my installation as the 2010 president of the St. Charles County Association of Realtors.

Extension of 2010 Home Buyer Tax Credit

Question: Can I still get the $8000 tax credit even if my new home isn’t finished before 12/1/09?

We are purchasing a newly-constructed home, and the builder says it should be ready by mid-November. One of the reasons we are buying is because of all of these tax credits, but what happens if there is a delay in construction and we don’t close escrow/get the key until after the cutoff date? Are we out of luck unless the program is renewed for 2010?

Answer: You tell that builder if you are not in by December 1st then he owes you the 8k

Legislators Join Together and Repeal Home Energy Tax

Despite narrowly passing a 2.5 percent home energy tax earlier this year, the Nassau County legislature recently voted 13-5 in favor of repealing it. During a meeting Dec. 21, the 19-member legislature voted 13-5 in favor of eliminating the tax; Republican Nassau County Executive-elect Edward Mangano, who currently represents the 17th District, was not present for the meeting and therefore did …

Buy before April 30th, 2010 on the newly extended “1st time & current home Buyers Tax Credit“