This is Minna here, and I have some exciting news. There is an old adage that says, and I paraphrase, that nothing in life is free. While this is mostly true, I have found an exception. Remember when I blogged about the $7,500 tax credit, which was more like. a zero-interest loan? Well, the government has revised and one-upped that offer. In the American Recovery and Reinvestment Act of 2009 (otherwise known as the stimulus bill), there is a provision that provides first-time homebuyers with up to an $8,000 tax credit in addition to your refund. This time, however, you don’t have to pay it back. It’s part of the plan to stimulate the economy, and you can benefit from it.
Here’s how it works. The basics are the same as or similiar to before They will give you ten percent off the price of the house, up to $8,000. The full amount of credit is available to individuals who have an adjusted gross income under $75,000, $150,000 on a joint return. You have to be a first-time buyer, which means that you haven’t owned a principle place of residence in the past three years. If you’re married and file separately, then each spouse would receive up to $4,000. Let me reiterate that you do not have to pay this credit back. If the home is sold within three years of purchase, however, the entire credit is returned. This credit is available to all first-time homebuyers who purchase between January 1, 2009, and December 1, 2009.
This is just a brief summary of the $8,000 tax credit you can receive as a first-time homebuyer. If you would like to learn more about this tax credit, you can contact us and/or visit this website, provided by the National Association of Home Builders (NAHB).
Posted on March 12th, 2009 by Steve Hong
Filed under: Buyers, Featured, First Time Buyers
Minneapolis, MN