Posted by: apriljobeasley | March 11, 2009

$8,000 Tax Credit vs. $7,500 Tax Credit

Many people are totally confused about the new tax credit that has been rolled out by the government.  There are many questions surrounding the new tax credit.  Number one, who is eligible?  The new tax credit is for first time home buyers or buyers who have not owned a home in the last three years.  It is possible that you owned a home but rented it out.  As long as you have not lived in that house in the past three years, then you to are eligible for the credit.  See why it gets confusing? 

Number two, do I have to pay the money back?  No, unlike the previous credit that had to be paid back over a period of five years (an interest free loan basically), this loan does not have to be paid back.  You must live in the home for three years for this to be true.

Number three, what types of homes qualify?  Any home that will be used as your primary residence.  Whether it is a town home, single family home, condo, mobile home, or houseboat, the home will qualify.

Number four, do I have to wait until tax time to receive the money?  No!  Talk to your agent or CPA.  They will be able to show you how you can use the money for a down payment, furniture, or make repairs to the home.  You do not have to wait until April 2010 to receive the money!  Even if you have already filed your tax return for 2008 you can file an ammended return and claim your credit now!

Number five, how long will this credit be avaliable?  The credit is only avaliable for homebuyers that are purchasing from January 1, 2009 to December 1, 2009.

There are so many other questions it would take forever for me to go through all of the answers.  You can visit http://www.federalhousingtaxcredit.com/2009/faq.php for more information.

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