New details of the stimulus for home buyers
The House has passed the modified version of the stimulus bill, and like the initial version last month the vote split down party lines with no Republican support. Now that the Congressional record has been updated with the text of the new bill, we can take a closer look at the tax credit for home buyers. According to the updated legislation:
- Tax credit of 10% of the purchase price up to $8,000
- Credit only valid for first-time home buyers purchasing a principal residence
- Credit can be applied to purchases made from January 1, 2009-December 1, 2009
- Home purchased must be principal residence for 3 years or credit will be recaptured
- Only applies when taxable income for the year is less than $75,000 (file single return) or $150,000 (file joint return)
Good news for buyers who purchased a new home already this year – you may still qualify for the $8,000 tax credit. And while the extra $500 might not be that exciting, he won’t have to repay any of the credit like in the housing recovery plan that passed last summer.
Check out Trulia Voices for more information about the stimulus bill, and let us know what you think of it. There’s some great tax credit information availalbe on Trulia Voices real estate blogs!
Katie Wickham, Marketing Manager
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Legacy Comments
There seems to be some confusion on how the $8000 credit works. If I qualify for it (under income limit, buy first time in March 09), can I submit an amended 1040X for 2008 and get an $8000 check from Uncle Sam?
“Only applies when taxable income for the year is LESS THAN $75,000 (file single return) or $150,000 (file joint return)” Correct?
Hi Peter – I don’t know much about the mechanics of how the refund will work (not sure anyone is, at this point!). A tax professional could give you the best answer here.
Hi CityBurb – Thanks for the clarification. Will update the post.
The fact that this $8K tax credit represents a true credit is awesome. Though the previous $7,500 tax credit for 1st time home buyers represented one heck of a no interest loan, we’re seeing an improvement here.
OUR HOUSE DEAL CLOSES ON FEB. 25TH 2009 CAN I AMEND MY TAXES FOR 2008 TO GET THE 8000 TAX CEDIT NOW?
So if I have put a bid on a house and it has been accepted as of today (3/23/09), can I amend my 2008 taxes to receive the credit sooner? My realtor told me that as long as I have an accepted bid before 4/15, I can do it. Waiting for my tax guy to return my calls. The closing isn’t until mid-June. Any help would be appreciated!
It’s a shame that the stimulus package is only for first time buyers but I guess it’s a start to get the real estate market back on track.