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In addition to my recent Creative Ways To Get A Downpayment Post, I wanted to also write about the new $8000 tax credit for 2009 home buyers.
As part of the 2009 Stimulus package, there is a great incentive for home ownership available to some lucky home buyers. I personally feel that this would have been better if given out across the board, but here is how to get the $8000 tax credit:
“The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.”
-www.federalhousingtaxcredit.com
“Qualified first time home buyers “ What does this mean?
More than you think actually! Upon reading further it is actually for anyone who has not owned in the last three years and meets other guidelines as well. For example, your spouse also may not have owned a home in the last three years.. In addition there are income requirements: For singles: Modified Adjusted Gross Income of $75,000 for the entire amount and up to $95,000 for a portion of it before the credit phases out. For married couples, those numbers change to $150,000 and $170,000.
The credit is equal to 10% percent of the cost of the home up to $8000 –
This should not be an issue in the Seattle real estate market as far as taking advantage of the entire credit.
If you qualify for it you can take the credit on your 2008 tax return! This is the cool part as taken from http://www.federalhousingtaxcredit.com :
“If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.”
Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.”
Looking for Seattle houses to qualify? Check them out here and feel free to send any questions my way: Courtney@cooperjacobs.com
©Cooper Jacobs Real Estate Services, Seattle real estate - Need a Seattle Realtor with your best interest at heart?
Disclaimer: This information is provided for convenience. You should consult with your tax professional/accountant for further details in determining whether or not you meet qualifications.
New update to this:
http://cooperjacobs.com/blog/2009/11/07/the-new-new-tax-credit/
Please help me on how to get the 8000
So if I bought a home January 2009 the only way i can receive $8,000 is when i file my income tax for 2008?
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