BEST REMAX
AGENT IN
BROWARD
COUNTY. Buy, sell,
real estate, houses,
homes, for sale,
Broward County,
Palm Beach county,
remax, partners,
platinum, chairman,
award, agent, realtor,
sales, top, best, #1,
Coral Springs,
Pembroke Pines,
Plantation, Fort
Lauderdale, Weston,
Parkland, Coconut
Creek, Sunrise,
Davie, foreclosures,
financing,
AGENT IN
BROWARD
COUNTY. Buy, sell,
real estate, houses,
homes, for sale,
Broward County,
Palm Beach county,
remax, partners,
platinum, chairman,
award, agent, realtor,
sales, top, best, #1,
Coral Springs,
Pembroke Pines,
Plantation, Fort
Lauderdale, Weston,
Parkland, Coconut
Creek, Sunrise,
Davie, foreclosures,
financing,
Buy, sell, real estate, houses,
homes, for sale, Broward County,
Palm Beach county, remax,
partners, platinum, chairman,
award, agent, realtor, sales, top,
best, #1, Coral Springs,
Pembroke Pines, Plantation, Fort
Lauderdale, Weston, Parkland,
Coconut Creek, Sunrise, Davie,
foreclosures, financing,
homes, for sale, Broward County,
Palm Beach county, remax,
partners, platinum, chairman,
award, agent, realtor, sales, top,
best, #1, Coral Springs,
Pembroke Pines, Plantation, Fort
Lauderdale, Weston, Parkland,
Coconut Creek, Sunrise, Davie,
foreclosures, financing,
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Tax Credit: $8,000.00 in my pocket?
Who, how and when explained below
Disclaimer: I am not an accountant nor tax advisor. Please consult your tax advisor /
accountant to determine whether you are eligible for this tax credit before making any
decisions or changes to your tax status. This web page is for information purposes only and
should be verified by a tax professional.
Main Highlights
1. Eight thousand dollars, new buyers only: This credit is equivalent to 10 percent of
the purchase price of the home--although it's capped at $8,000--and applies only to first-
time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax
credit, this one does not have to be repaid.
2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer"
is someone who hasn't owned a principal residence for three years before buying a house.
(The date of purchase is considered the day that the title is transferred.) That means if
you've owned a vacation home--but not a principal residence--within the past three years,
you would still qualify for the credit.
3. 2009 buyers only: Only those who purchase a home on or after January 1 and before
December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be
able to take advantage of it.
4. Income limits: The tax credit is subject to income limitations. Single buyers need a
modified adjusted gross income of $75,000 or less to qualify for the full credit, that's
$150,000 for married couples. Those earning more than these thresholds may be eligible
for reduced credits.
5. Refundable: Because the tax credit is "refundable," qualified buyers can take
advantage of it even if they don't have much tax liability. This means you can get
$8,000.00 cash!
6. Recapture: Buyers have to own the home for at least three years in order to capitalize
on the credit. If they sell the home before then, they will have to return the credit to the
government. (Exceptions will be made in certain cases, such as death or divorce.)
For people who recently purchased a home or are considering buying in the next few
months, there are several different ways that they can get this tax credit even if they’ve
already filed their tax return.
People can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax
returns next year.
The filing options to consider are:
IRS.gov provides more information, including guidance for people who bought their first
homes in 2008. To learn more about the overall implementation of the Recovery Act, visit
www.Recovery.gov.
Who, how and when explained below
Disclaimer: I am not an accountant nor tax advisor. Please consult your tax advisor /
accountant to determine whether you are eligible for this tax credit before making any
decisions or changes to your tax status. This web page is for information purposes only and
should be verified by a tax professional.
Main Highlights
1. Eight thousand dollars, new buyers only: This credit is equivalent to 10 percent of
the purchase price of the home--although it's capped at $8,000--and applies only to first-
time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax
credit, this one does not have to be repaid.
2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer"
is someone who hasn't owned a principal residence for three years before buying a house.
(The date of purchase is considered the day that the title is transferred.) That means if
you've owned a vacation home--but not a principal residence--within the past three years,
you would still qualify for the credit.
3. 2009 buyers only: Only those who purchase a home on or after January 1 and before
December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be
able to take advantage of it.
4. Income limits: The tax credit is subject to income limitations. Single buyers need a
modified adjusted gross income of $75,000 or less to qualify for the full credit, that's
$150,000 for married couples. Those earning more than these thresholds may be eligible
for reduced credits.
5. Refundable: Because the tax credit is "refundable," qualified buyers can take
advantage of it even if they don't have much tax liability. This means you can get
$8,000.00 cash!
6. Recapture: Buyers have to own the home for at least three years in order to capitalize
on the credit. If they sell the home before then, they will have to return the credit to the
government. (Exceptions will be made in certain cases, such as death or divorce.)
For people who recently purchased a home or are considering buying in the next few
months, there are several different ways that they can get this tax credit even if they’ve
already filed their tax return.
People can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax
returns next year.
The filing options to consider are:
- 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.
IRS.gov provides more information, including guidance for people who bought their first
homes in 2008. To learn more about the overall implementation of the Recovery Act, visit
www.Recovery.gov.
