You’ve read the news recently regarding new legislation that could help stimulate the overall economy and get those first-time home buyers off the fence and into a home. President Barak Obama is expected to sign economic stimulus legislation this week which includes an improved version of last year's tax credit.
While the outcome of the current legislation is still being finalized, there’s some great news for first-time home buyers:
- Features a larger tax refund incentive, now $8,000, and eliminates the repayment requirements;
- Extends the period to claim the credit to November 30, 2009, creating more opportunity for customers who want a to-be-built home (retroactive to January 1, 2009)
- The credit can be taken on either the 2008 or 2009 tax return (customers can file amended 2008 return if they close after they file their 2008 return)
- The credit amount is based on 10% of the purchase price, up to $8,000, and subject to possible reductions based on modified adjusted gross income
- The original provision allowed taxpayers who did not own a home in the past three years to be eligible; the new provision has yet to confirm this guideline.
As with all tax credits, there are eligibility guidelines such as maximum income allowed, etc. You can obtain more information online at federalhousingtaxcredit.com or http://www.irs.gov/newsroom/article/0,,id=206291,00.html.
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