Time is running out on the $8000 Tax Credit. The average time to close a home is 45 days now. So to take advantage of the Tax Credit a purchase offer should be accepted by October 15, 2009 to close by the November 30th deadline.
Review the highlights below:
March 19, 2009 -- The American Recovery and Reinvestment Act of 2009 was just signed into law. One of the major provisions provides an $8,000 tax credit to qualified First Time Home Buyers defined as those who have not owned a home in the last three years.
$8000 tax credit highlights:
• The $8000 tax credit or 10% of the home’s purchase price, whichever is less, is available only for first time home buyer defined as those who have not owned a home in the last three years.
• There is a $75,000 adjusted gross income limit for tax filers filing as single and $150,000 limit for joint return filers. It is available only for primary residence.
• The tax credit does not require a repayment in most cases. The tax credit does have a repayment provision if the homeowner does not occupy the property for a minimum of 3 years from the closing date.
• The home buyer must purchase a home between January 1, 2009 and close by November 30, 2009
• The $8000 tax credit is received when you file your tax return. Home buyers may file an amended 2008 tax return with a 1040X form. You should consult with a tax ad visor to ensure you file this return properly.
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