The Big News - Home Buyer Federal Tax Credit
November 9, 2009
After much speculation and much pressure from the interested groups, the Congress passed, and President Obama signed, the extension and revision of the Home Buyer Federal Tax Credit Act. The information that I have received indicates that this act provides for the extension of the $8,000 tax credit to first time home buyers purchasing a property that till be their principal residence. It also added a $6,500 tax credit for buyers who have been residing in their principal residence for 5 consecutive years out of the past 8 years if these buyers are purchasing a home to be their principal residence.
There are other eligibility requirements. Homebuyers who file as single or head-of-the-household taxpayers can claim the full $8,000 or $6,500 (depending on which eligibility they have) if their modified adjusted gross income is less than $125,000. Fir married couples filing a joint return, the combined income limit is $225,000.
The eligibility period for the tax credit is for homes purchased after November 6, 2009, and before May 1, 2010.
All homes with a purchase price of less than $800,00 qualify, including newly constructed or resale, single family detached, townhouses or condominiums, provided the home will be used as their principal residence.
This tax credit is a refundable credit which means that is the amount of the income taxes that you owe is less than the credit amount for which you qualify, the government will send you a check for the difference.
Obvious, this is a quick overview of the tax credit act. If you need more information, I feel certain that it can be obtained from http://www.irs.gov/
After much speculation and much pressure from the interested groups, the Congress passed, and President Obama signed, the extension and revision of the Home Buyer Federal Tax Credit Act. The information that I have received indicates that this act provides for the extension of the $8,000 tax credit to first time home buyers purchasing a property that till be their principal residence. It also added a $6,500 tax credit for buyers who have been residing in their principal residence for 5 consecutive years out of the past 8 years if these buyers are purchasing a home to be their principal residence.
There are other eligibility requirements. Homebuyers who file as single or head-of-the-household taxpayers can claim the full $8,000 or $6,500 (depending on which eligibility they have) if their modified adjusted gross income is less than $125,000. Fir married couples filing a joint return, the combined income limit is $225,000.
The eligibility period for the tax credit is for homes purchased after November 6, 2009, and before May 1, 2010.
All homes with a purchase price of less than $800,00 qualify, including newly constructed or resale, single family detached, townhouses or condominiums, provided the home will be used as their principal residence.
This tax credit is a refundable credit which means that is the amount of the income taxes that you owe is less than the credit amount for which you qualify, the government will send you a check for the difference.
Obvious, this is a quick overview of the tax credit act. If you need more information, I feel certain that it can be obtained from http://www.irs.gov/
posted by shirley harry at 8:21 AM
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