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Tax Credit Stipulations
Unless you have been living under a rock for the past year or so, everyone is aware of the $8,000 tax credit available for first-time home buyers that close on their home before Dec. 1st, 2009. Since the release of this credit, there have been several misconceptions that have cropped up, so here are some important caveats to the tax credit:
1) You or your spouse may not have previously owned a home for three years prior to the home purchase
2) You must reside in the home (as your primary residence) for the next three years to stay in the program
3) The tax credit is for 10% of the purchase price of the home, up to $8,000 (not an automatic $8,000)
4) You cannot make more than $75,000 if you're a single-filer, or $150,000 for married couples filing jointly
5) The credit will not be received automatically; people who qualify will need to amend their 2008 tax returns, or file on 2009 taxes
6) The credit goes against other owed taxes first - should a qualified person have no other outstanding tax dues, then they would receive a check for the credit amount.
Hope this helps - the clock is ticking, so if you plan on qualifying for the tax credit, get your offers in now!!
As always, please feel free to call me at 239-357-9558 with any of your Real Estate questions. Have an Outstanding Day!
