Federal Government Offers $8000 Tax Credit
Posted by RealEstate_Guru
Curious about the $8,000 Home Buyer Tax Credit?
We’re fielding lots of questions about the newly revised federal home buyer tax credit. The numbers of buyers looking for homes in Cary, North Carolina is definitely on the increase under the new terms of the tax credit. Read on to find out how to take advantage of this important government program.
What it is: A gift! An $8,000 tax credit for first-time home buyers.
What it means: If you purchase a home before December 1, 2009, you’ll be able to take advantage of this significant tax break. In other words, you’ll either pay $8,000 less in income taxes or receive an additional $8,000 in your tax refund. Either way, it’s a true $8,000 benefit that’s there for the taking! You can even elect to have the $8,000 applied to your 2008 or 2009 tax bill.
Who qualifies: For the purposes of this program, a first-time home buyer is defined as someone who has not owned a home in the previous 3 years. You should also know that if you sell a home you purchase under this program within that 3 year period, you will be required to repay the credit to the government.
The details: In order to receive the full $8,000, the home you purchase must cost over $80,000. Also, if you’re a single (unmarried) home buyer, the adjusted gross income on your federal tax return must be less than $75,000 for you to receive the full $8,000 benefit. The benefit decreases for incomes over $75,000 and single tax payers who earn over $95,000 do not qualify.
For married couples who file their federal income tax jointly, their adjusted gross income must be less than $150,000 to qualify for the full benefit. The benefit decreases for incomes over $150,000 and married couples who earn over $170,000 do not qualify.
Leave a Reply