FIRST-TIME HOMEBUYER TAX CREDIT FOR TOMAHAWK AREA BUYERS!
In 2009, Congress has made the first-time homebuyer tax credit available up to $8000 and made changes to the credit that was used in the previous year. This credit is currently available for purchases between 01/01/2009-12/01/2009.
Tax Credit -- The Nuts and Bolts 1. What is the 2009 incentive for first-time homebuyers? $8,000 tax credit or 10% of the cost of the home (whichever is less). This tax credit is not repayable if you keep the home for a minimum of three years. It is only available on principal residence purchases and the home must be purchased between 01/01/2009 and 12/01/2009. 2. Who can receive the tax credit? You must be a first-time homebuyer to qualify. (You have not have ownership interest in a home in a minimum of three years. 3. Does that mean I will get up to $8000 back at the end of the year? Not exactly, but in some cases that is very possible. The tax credit reduces your taxable income. The credit is shown on your individual tax return. 4. Are there any restrictions? Yes. If you are filling your 1040 tax return as single or head of household your income can not exceed $75,000, and if you are filing jointly your income can not exceed $150,000. 5. So if I exceed the income requirements, I receive nothing? That is not always the case, but the credit is reduced once you get above those income amounts. 6. Do I have to repay my 2009 tax credit? NO!!! You do not have to repay this tax credit! 7. How do I get the tax credit, is there any application to fill out? There is nothing you need to do prior to purchasing your home. You will claim the credit on your tax return at the end of the year. For more information visit the IRS website. 8. Can I use the credit towards my downpayment? This is currently not an option. |