What exactly is the $8,000 tax credit that is in the stimulus bill for 1st time home buyers?
June 22nd, 2010 by
According to what I just read on Yahoo “First-time homebuyers could get a tax credit of up to $8,000 if they buy homes between Jan. 1 and Dec. 1.” What does this mean for first time home buyers? Also, how do I know if this has been approved? I was unsure by how they article was worded.
Thanks:)
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This credit is available for first time home buyers and those who did not own home in last three years. It is in fact interest free loan of up to $7,500. The credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 for either a single taxpayer or a married couple filing jointly.
It’s nothing yet. It’s not been passed into law yet.
Actually, this is the Senate and House’s compromise in the Economic Stimulus package. If ratified by Obama on Feb 16, it will provide first-time homebuyers who purchased a home between Jan 1 and Dec 31 2009, a credit of $8000 against their ‘09 federal tax liability. It would not have to be repaid. Currently, there is a $7500 tax credit (interest-free loan) available to first-time homebuyers who purchased during April 1 2008 through June 30, 2009. That is required to be paid back over time, although it does not depend on your federal tax liability – it is a guaranteed check for the full amount. Obama signing the new legislation would eclipse the old $7500 tax credit.