Who Can Get the $8,000 Tax Credit?
Most individuals are very confused on this credit. I have heard that some individuals believe they will be receiving a check for this ‘credit.’ Some individuals even believe that you can use this credit for any purchase of a home. Both of the above are not true.
The following are the requirements for the credit:
1) Buyer must fit the federal standard of a first-time homebuyer. They must not have purchased a house anywhere for the last 3 years, and the property must be owner-occupied/principal residence.
2) The tax credit is for 10% of the home purchase price up to the maximum of $8,000. That means that this will be deducted directly from what the buyer owes in taxes. If they owe less then $8,000 or owe nothing in taxes, they will receive a check.
3) If the buyer, within 3 years of the purchase, sells or is no longer the principal resident the buyer will have to payback the credit they received.
4) The purchase of the principal residence must be done between January 1, 2009 through November 30, 2009. (If the property was purchased in 2008, the buyer maybe able to get the $7,500 repayable tax credit!)
5) To receive the credit, the buyer or buyers must fit the following gross income limits.
Single: gross income of $75,000
Married couple: gross income of $150,000
A partial credit is available for those who fit in the following gross income limits:
Single: gross income of $95,000
Married couple: gross income of $170,000