I continue to be amazed how few people know about this. Â The whole concept of a “Federal Housing Tax credit” sounds a little daunting. Â This is cash in hand, people! Â Most people seem somewhat aware of the $8,000 first time homebuyer tax credit.
This website, www.federalhousingtaxcredit.com , is a good resource to answer all of your questions related to this.
The first time home buyer credit is pretty straight forward. Â If you have not owned a home in the last three years. you can receive up to an $8,000 tax rebate (better know as cash back!)
If you have owned a home for five of the last eight years, and you buy a new home, that you will be living in, you can receive a $6,500 tax credit.
Here are a few of the key details you need to know:
– The first time home buyer tax credit is 10% of the purchase price of the new home, or
$8,000, whichever is more.
– The second time home buyer tax credit is 10% of the purchase price of the new home, or $6,500, whichever is more.  This is the credit for move up buyers, people who want an executive home or to move into an active adult home.
– You need to be under contract to buy a home by April 30, 2010 and must close the purchase by June 30, 2010.
– There are income limits. Â Single taxpayer’s income must be under $125,000; the limit is $225,000 for married taxpayers filing a joint return.
– If your income is above those limits, you may qualify for a partial tax credit.
– The tax credit is not a gift. Â There was a prior $7,500 tax credit that was a gift and had to be repaid.
– The tax credit is not for investment home or second home purchases.
– You need to amend your taxes and use IRS tax form 5405 when you file to get the tax credit. Â IRS form for Housing tax credit.
– There was a lot of excitement when the law passed that allowed for this.
First time home buyer tax credit information
However, time is running out on this credit! Â If you are going to take some of this free money to buy a house, you need to start your home search soon. Â The best way to start a home search is to get pre-approved for a new mortgage. Â Call me today and we can start the process in only a few minutes on the phone.
