If your looking to buy a house soon, you better hurry. Your time is running out to claim your $8,000 tax credit form the government for buying your new home. Home prices are ridiculously low, low interest rates and you get $8,000 credit. What else do you need?!!!
Hopefully this will clear up an questions you have on the whole tax credit program.
Who is eligible?
First time home buyers.
Who is a first time home buyer?
Anyone who has not owned a house in the past 3 years.
When do I need to buy the house by?
No later than December 1st, 2009.
Is the tax credit always $8,000?
The tax credit is 10% of the purchase price up to $8,000. So any house priced at $80,000 or above gets you the full $8,000.
Is there an income limit?
If you are single and make $75,000 or less or if you are married and you jointly make $150,000 or less then you can get the full tax credit. (The tax credit is based on your modified adjusted gross income. Ask your accountant to figure this out for you.)
What if I make more than that?
If you are single and make more than $75,000 but less than $95,000 or if you are married and you jointly make more than $150,000 but less than $170,000 then you can still get a portion of the tax credit. (The tax credit is based on your modified adjusted gross income. Ask your accountant to figure this out for you.)
Do I have to pay back the tax credit?
No
How long do I have to live in the house I buy?
You have to live in the house you receive the tax credit on for at least 3 years or a portion of the tax credit could be recaptured.
How do I receive the tax credit?
You get the tax credit by filing a tax return. Have your accountant fill out IRS form 5405 to figure out your tax credit. This amount is then used on your tax return.
If you still have any questions feel free to Contact us anytime.