$8,000 tax credit for first time homebuyers a success so far
While the final numbers may not be available for a few weeks or even months, a preliminary report released earlier this month by the Treasury Inspector General for Tax Administration indicates that the recently introduced $8,000 tax credit for first time homebuyers is working better than expected. In fact, as of either March 6 or March [...]
While the final numbers may not be available for a few weeks or even months, a preliminary report released earlier this month by the Treasury Inspector General for Tax Administration indicates that the recently introduced $8,000 tax credit for first time homebuyers is working better than expected.
In fact, as of either March 6 or March 7, 2009, the Internal Revenue Service (IRS) it appears that about 1.4 million taxpayers intend to claim the the tax credit on their 2008 tax returns. And as Inman News points, out that’s very close to meeting or exceeding “the 2 million target set by lawmakers before it sunsets Nov. 30, 2009.”
Of course, taxpayers had until April 15, 2009, to claim the credit on their returns, which means that the estimated 1.4 million figure will likely increase. What’s more, buyers who buy between then and Dec. 1, 2009, can also pocket the $8,000 on their 2009 tax returns.
But there does appear to be a little confusion: Of the 567,685 households that claimed the tax credit, 38,158 weren’t eligible because they may have been homeowners in the last three years.
So be sure you know the requirements before filling out form number 5405!
For those who may be a little late to the party let’s do a quick reset of the $8,000 tax credit, which was part of the $789 billion American Recovery and Reinvestment Act of 2009 — a blockbuster stimulus initiative that is expected to boost employment and jumpstart the national economy.
The new bill provides a first-time home buyer with an $8,000 maximum tax credit (or 10 percent of the purchase price) on a purchase made before Dec. 1, 2009. It can be claimed on a 2008 (due this April) or 2009 (due next April) federal tax return and does not need to be repaid if the person resides in the property for more than three years.
In addition, first-time homebuyers who bought in 2008 (April 8 through Dec. 31) have been rolled into the equation. However, the maximum credit is $7,500 and must be paid back over a 15-year period.
For more on the $8,000 home buyer tax credit click here. Be sure to contact your personal accountant or the individual who files your taxes for additional information on how to take advantage of this limited-time money-saving offer.
And, of course, if you intend to strike while the iron is hot and purchase a home in the next few months while the prices and interest rates are at all-time lows, be sure to check out the best deals in your area on Foreclosure.com RIGHT HERE.
We can help you save so much more on top of the $8,000!
