FIRST-TIME HOMEBUYER TAX CREDIT ALERT
The American Recovery and Reinvestment Act (ARRA) included a new $8,000 first-time homebuyer tax credit for 2009 home purchases.
Taxpayers who have recently purchased a home or are considering buying a home, have several different ways that they can receive this tax credit – even if they have already filed their tax return.
Qualifying taxpayers who purchase a home between Jan. 1, 2009 and Dec. 1, 2009 can claim up to $8,000 or $4,000 for married individuals filing separately. Taxpayers can claim the credit either on your 2008 tax returns or 2009 tax returns next year. The credit begins to phase out at a modified adjusted gross income of more than $75,000, or $150,000 for joint filers. Taxpayers can claim 10% of the purchase price up to maximum credit.
FILING OPTIONS:
• File an extension. Taxpayers who haven’t yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15. This step would be faster than waiting until next year to claim it on the 2009 tax return. Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit.
• File now, amend later. Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later. Taxpayers would file their 2008 tax forms as usual, then follow up with an amended return later this year to claim the homebuyer credit.
• Amend the 2008 tax return. Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the homebuyer credit on the 2008 return without waiting until next year to claim it on the 2009 return.
• Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.
Source:
U.S. SENATOR MICHAEL BENNET
Member: Agriculture, Banking, Homeland Security and Aging Committees
FIRST-TIME HOMEBUYER IN 2008?
In addition to the first-time homebuyer tax credit included in the ARRA, taxpayers who purchased a house between 04/08/08 and 12/31/08 qualify for a $7,500/3,750 tax credit that will need to be repaid over 15 years.
MORE INFO:
Definition of First-time Homebuyer
IRS overview of the tax credit
$8000 Tax Credit for Down Payment!
eco-modpod says:
This is the best time to buy a home! Fantastic tax credit and low, low interest rates!
TOP HOME BUYING INVESTMENT CRITERIA:
1. Close to or in downtown areas/new suburban town centers
2. Walking distance of parks, trails, lakes, etc
3. Walking/biking distance to shops and restaurants
4. Walking distance to public transportation (bus, light rail, train, subway)
5. At least one house between your property and a busy street.
6. Upgrades already completed (unless you are already a super duper handy person–not fantasies of being one). Remodeling projects only bring $.50-.80 return for every dollar spent. Let others spend their time, frustration and money while you reap the rewards.
7. Be ready to own the property for at least 3 years. If you need to move unexpectedly would the property make a good rental?
click to enlarge Denver map
Great Denver Neighborhoods to consider:
1. Sloan’s Lake (NW Denver/greater Highlands area)
2. Berkeley (NW Denver/ greater Highlands area)
3. Potter Highlands (NW Denver/greater Highlands area)
4. West Highlands (NW Denver/greater Highlands area)
5. Five Points (downtown)
6. West Wash Park (South Denver)
7. Congress Park (downtown)
8. Capitol Hill (downtown)
9. Cheesman Park (downtown)
10. University Hills (South Denver)
11. University Park (South Denver)
12. Edgewater (NW Denver, west of Sloan’s Lake)
Great Neighborhoods West of Denver:
13. Golden
14. Green Mountain
15. Belmar
Bridget Slevin, Ecobroker
Coldwell Banker
SoldByBridget@hotmail.com
720.232.7448
[...] home purchase in 2008, tax credit for home purchase in 2009, tax credit for homeowners, USA Today Click here for current info on the First-Time Homebuyer $8000 tax [...]
[...] Nuts and Bolts of $8000 First-time Homebuyer Tax Credit [...]
[...] * $8000 First-Time Homebuyer Tax Credit [...]