Karen Stephenson
RIGHT PROPERTY SOLUTIONS LLC
P.O. BOX 720262
ATLANTA, GA 30358
Direct: 404-328-8372
Office: 404-474-1001
E-mail: karen@1goodagent.com
www.karenstephenson.com
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As part of the recent economic stimulus bill of 2009 - an $8,000 home buyer tax credit was created. This credit will apply to home buyers who buy a home this year.
Who is eligible for the $8,000 home buyer tax credit?
Any one who buys a home between January 1, 2009 and November 30, 2009 and meets the following conditions:
- You must not have owned a house in the past 3 years. This is the “first time” homeowner condition.
- Your income must be less than $75,000 for singles or $150,000 for married couples.
For example, a singles that make up to $95k and couples
that make up to $170k can get a partial credit.
Is this credit a loan?
No. This credit does not have to be paid back.
Are there any strings attached?
Yes. You
must stay in your home for three years. If you do not stay
in your home the credit must be re-paid.
What is a “first time home buyer”?
A first time home buyer (singles or couples) is someone who
has not owned a house in the past 3 years or has never owned a house. For couples.
It is important that if you sold your last home in 2006 that you don’t close on the new
home within 3 years of the previous selling date or you won’t
receive the credit. For example, if you sold your last home
on June 1, 2006 then don’t close on a new home before June 1, 2009.
Is the tax credit $8,000 for everyone?
No. The actual credit is $8,000 or 10% of the house value, whichever is less. For example, if your
home is worth $200,000 then you would get $8,000. If the
home is only worth $70,000 then you would only get 10% of $70k which is $7,000.
Is this a refundable tax credit?
Yes. The $8,000 credit means that anyone who is eligible for this credit can subtract $8,000 from the amount of tax owed to the IRS. If you don’t owe $8,000 in taxes then you will get a refund for the difference.
For example, if Bob owes $30,000 in taxes and is eligible for the $8,000 credit then he will deduct $8,000 from $30,000 and will owe only $22,000 in taxes. Steven only owes $5,000 in taxes so if he qualifies for the credit then he will not pay any taxes and will get a refund of $3,000.
If you are interested in
purchasing a new home please contact Karen Stephenson at karen@1goodagent.com.
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