$8,000 Tax Credit for First Time Home Buyers
Now that the massive $700+ Billion Stimulus Package has been signed into law, there are going to be a lot of questions to answer about what sort of relief home buyers will get in Minnesota.
At one time, Congress was talking about giving a $15,000 Credit to everyone who bought a home this year, regardless of whether they were a First Time Home Buyer or existing home-owner buying another house.
We have some details on the New Package, but are still waiting for a few last nuggets of info to make it official.
Here’s what we know:
- $8,000 Refundable Tax Credit to First Time Buyers
- If the owner lives in the home for 3 years or more, they will not have to repay the credit
- Should apply to all closings from Jan 1, 2009 – Nov 30, 2009.
- This plan will replace the current $7,500 Tax Credit which started in April of 2008
- Both/All buyers must be first time home owners
It doesn’t look like the plan will include buyers who purchased homes back in 2008 and more specifics are still needed on how you will claim this on your income tax return.
Under the $7,500 Tax Credit, it is repayable for 15 years at $500 minimum per year, starting 2 yrs after the purchase.
Keep checking back as the Bill gets enacted over the next few weeks. We will keep you up to speed.
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Comments
Yes,
This is a nationwide Tax Credit. Ask your CPA or a tax professional about what form(s) to fill out on your income tax returns. This is good for all First Time Buyers closing between Jan 1st, 2009, and Nov. 30th, 2009.
You can’t file for the credit until after you close, but if you want the money right after you buy, you can simply file a Tax Amendment, so I am told.
This is very helpful for the first time home buyers. I think that the coverage is fair enough. I believe that this will attract more consumers.
Thank you for sharing this article. I find it very helpful especially my husband and I were planning to have a new home. Thanks for the informations that every first time home buyer should know.
I purchased my house from my parent in 2008 and I am in the process of changing the title of the house from my parents name to my name….this is my first purchased house. Based on those facts am I eligible to receive this tax credit?
Thanks.
Lillian
@Lillian Burke: First off I would tell you to consult a tax professional, since this is an IRS tax credit, real estate companies have nothing to do with qualifications or disbursement of the credit. Secondly, if you “purchased” your house from your parents in 2008, that means you would have transfered title to your name back in 2008, and may be eligible for the 2008 Home Buyer Tax Credit. If you didn’t transfer title back in 2008, that means you didn’t actually buy the home, unless you signed a Contract for Deed which is a valid home purchase. Again, a tax professional should know the rules of this credit and be of more help with your individual situation.
I was reading the article about first time home buyer $8000 dollar tax credit, do you know if that program will be provided for persons that live in Florida?
Thank you,