The IRS says that
first time home buyers should begin planning now to take advantage of a new tax credit included in the recently enacted Housing and Economic Recovery Act of 2008. This Act came about as part of the stimulus package that you may have heard about in the news over and during the last several weeks. Now the question becomes, are the folks out there going to take advantage of this wonderful opportunity provided by the government which is designed to assist them with the purchase of their first home? Well, it just happens to be one of my jobs to not only present the information about the availability and eligibility of the program, but to also assist you with its practical implementation. That is, come on over and see us, or
give me a call so that we can talk to determine if you meet the various IRS and
mortgage requirements and then we can go see a few homes which of course you will obviously wish to purchase one of them, thereby having done your patriotic duty to your country and its economy as well as providing for yourself first class luxury accommodations right here in good ole Fort Worth, Texas.
Please keep in mind that the information provided below are some (not all) of the guidelines in the IRS information dated September 16, 2008. We paraphrased the information to give you the basic idea.
By Bernie Christian
IRS Rules for first time home buyers tax credit
- Applies to Homes purchased from April 8, 2008, to July 1, 2009
- Reduces the home buyer's bill or is a refund to the buyer dollar for dollar
- The credit must be repaid as an interest free loan over 15 years time at a rate of $500 per year for 15 years
- Vacation homes and Rental Properties are not eligible
- A tax payer that has owned a home during the last three years is not eligible
- The credit is 10 percent of the home purchase with a maximum available of $7,500
- The limit is $3,750.00 for a married person filing separately
- The phase out range is $150,000 to $170,000 for a married couple filing jointly - This means that the full credit is available for married couples filing a joint return whose Modified Adjusted Income is less than $150,000 or less
- For a single person it is $75,000 to $95,000 - This means that the full credit is available for other taxpayers who's Modified Adjusted Income is $75,000 or less
Who cannot take the credit?
- If your income is out of range: Joint filers with income over $170,000 or other tax payers over $95,000.00
- Those buying a home from a close relative
- Those who stop using their home as their main residence
- Those who sell their home before the end of the year
- Those who have taken advantage of the District of Columbia first time home buyer credit
- Those who have financing which comes from tax exempt mortgage bonds
- Those who have owned a main home from 3 years back from the date of purchase
