2009 Tax Credits for Buyers
Hello! There have been a lot of questions as to who gets what tax credit; can they be combined? Who needs to pay them back? Etc. Here is a breakdown of the tax credits that are available.
2008 Federal Tax Credit: This credit was for first time home buyers that purchased their homes between March 2008 and end of year 2008. The maximum credit was $7,500 in the tax year they bought the home. It then needs to be paid back over a 15 year period. Payments start 2 years after taking the tax credit and you can pay through your annual federal tax filing. This credit still needs to be paid back.
2009 Federal Tax Credit: A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid.
· Tax credit is for first-time home buyers only.
· Tax credit does not have to be repaid (as long as buyer lives in the home for 3 years)
· Tax credit is equal to 10 % of the home's purchase price up to a maximum of $8,000.
· Credit is for homes purchased on or after January 1, 2009 and before December 1, 2009.
· Single tax payers with incomes up to $75,000 & married couples with incomes up to $150,000 qualify for the full tax credit.
· Web site: http://www.federalhousingtaxcredit.com/2009/home2.html
California Tax Credit: A tax credit up to $10,000 (or 5% of purchase price, whichever is lower) is now available to first time buyers AND move up buyers. Here are the details so far:
· For new, never occupied houses and condos with a COE of March 1, 2009 to March 1 2010.
· Buyers must live in the home for 2 years to receive the credit.
· Buyers will get $3,333 off their taxes starting in the year of purchase and $3,333 in each of the two years afterward.
· No income limits.
· Tax credit doesn't have to be re-paid (unless buyer sells or rents out the home before 2 yrs.)
· This is a first come first serve credit and the limit for the state is $100 million.
· First time buyers can combine the state credit with the new federal $8,000 credit.
