Some of you have been asking recently about the home ownership tax credit that was part of the Housing and Economic Recovery Act (H.R. 3221) passed earlier this year. You should always talk to your accountant or tax specialist for the nitty gritty, but the following are some key points to consider:
- You have until July 1, 2009 to make a purchase that qualifies – The tax credit was passed in July 2008 and is worth up to $7,500 during a single tax year. You can take the credit on your 2008 tax return if you bought after April 9, 2008. If you are thinking of buying in the first half of 2009 you will be able to take the credit on your 2009 tax return.
- You don’t have to be a first-time home buyer – This is a common misconception but the tax credit is available to those who have not owned a home for at least 3 years.
- You DO have to pay it back – This is another common misconception but the money is more like an interest-free loan than a credit. The Federal government is looking for their money back in the form of 6.67% of the credit amount over 15 years. If you qualify for the full $7,500 then your payment will be about $500 a year and start in 2011. NOTE: The National Association of Realtors has been asking Congress to remove the payment and make this a “real” tax credit, not a loan. We’ll keep you posted…
- No paper work, are you kidding? – Believe it or not you don’t have to fill out an application or go through an approval process. However, before you claim the credit on your tax return, make sure you meet all the eligibility requirements.
More related information: Update! $7,500 Tax Credit
Tax Credit IRS Form 5405 (259.2 KiB, 490 hits)
Tax Credit for Unmarried Homeowners (19.6 KiB, 499 hits)
IRS Information Page
Check out some other similar posts!
Just before the holiday weekend, the President signed a bill to extend the closing date for buyers to take advantage of the $6,500 or $8,000 homebuyer tax credits.
PLEASE NOTE - ...
CLICK HERE TO READ MORE
It doesn't take a real estate genius to figure out that November's record breaking home sales numbers represent a whole lot of folks cashing in on the (old) homebuyer tax ...
CLICK HERE TO READ MORE
How quickly things change...a couple of weeks ago I wrote about the federal 8,000 dollar tax credit and lamented about the fact that Massachusetts was not one of the states ...
CLICK HERE TO READ MORE
UPDATE Jul-27-2009:
$8,000 Tax Credit Loan for Massachusetts Homebuyers
You heard it here last!!! Sorry for the delay folks, but it's partially that we've been so incredibly busy and partially that the ...
CLICK HERE TO READ MORE
I know I claimed to be a bailout burnout last week but I've got a quick update with some helpful information. You may have heard about this first-time home buyer ...
CLICK HERE TO READ MORE
According to the all knowing Wikipedia, the term "burnout" is used to describe the experience of long-term exhaustion and diminished interest. Yup, I relate. Today the President is expected to ...
CLICK HERE TO READ MORE
Things have been developing very quickly since the American Recovery and Reinvestment Act was passed by the House of Representatives last week. I have been reading like crazy to try ...
CLICK HERE TO READ MORE
Today the House of Representatives passed the American Recovery and Reinvestment Act of 2009 (a.k.a. another stimulus). The elimination of the repayment requirement for the $7,500 home buyer tax credit ...
CLICK HERE TO READ MORE
The National Association of Realtors (a.k.a NAR) has been going to Congress with data supporting their claim that the $7,500 first-time home buyer tax credit is a bust. I can't ...
CLICK HERE TO READ MORE
I recently went to get my taxes filed for the first time as a new home owner. (Yippee!) I made the appointment and started gathering all my paperwork and realized ...
CLICK HERE TO READ MORE
Closing Date Extended for Homebuyer Tax Credit
2010 Extended Homebuyer Tax Credit Basics
Massachusetts $8,000 Tax Credit Loan
$8,000 First-time Homebuyer Tax Credit
Yes, It’s Another Home Buyer Tax Credit Post
Confessions of a Bailout Burnout
American Housing Recovery 2.0
American Recovery and Reinvestment Act
Update! $7,500 Tax Credit
Get to know Jacob Clayton (155 Posts)Hi, I'm Jake...and that's my dog! By day I'm founder and Chief Geek at MyUntangled Media, LLC and Executive Director of Business Development at Barrett & Company Real Estate . By night I am part struggling musician, frustrated writer, wanna-be chef and obsessed dog owner. I started this site mainly to learn WordPress, work on my design and writing skills, and showcase some folks with all kinds of talents and great stuff to say. (Read the long version if you dare) and please introduce yourself over on my Google+ Profile!
